- Vincenzo Raimo is an independent international higher education consultant and a Visiting Fellow at the University of Reading where he was previously Pro Vice-Chancellor for Global Engagement.
In my recent article for The PIE News, I argued that the financial sustainability of international student recruitment deserves much closer scrutiny. With commissions, scholarships, marketing costs, and operational overheads taken into account, the margins on international enrolment are often far lower than they appear on paper – sometimes even negative.
At a time when the financial health of UK higher education is under intense pressure, it is right that we ask whether international recruitment is really worth it. But this doesn’t mean that every low-margin intake is necessarily a poor strategic decision.
In fact, there are good, sometimes essential, reasons why institutions might pursue or maintain international student recruitment with lower net financial return. But those decisions must be deliberate, transparent, and aligned with broader institutional aims. That’s not always the case.
So how can we assess whether low-margin recruitment is justified?
Here are five scenarios where low net revenue per student might make strategic sense:
1. Filling Capacity or Managing Fixed Costs
For many universities, fixed costs dominate the cost base. If recruiting a marginal cohort of international students helps fill underutilised teaching space or resources, and the marginal cost of teaching them is low, then even a small surplus can help improve the overall financial picture. This is particularly relevant in the context of declining domestic demand in some areas.
2. Maintaining Subject Diversity or Cross-Subsidising Departments
Low-margin international recruitment can sometimes help sustain strategically important but otherwise financially marginal subjects. This may include courses that support the university’s civic role or feed into regional skills needs. Used appropriately, it can help protect the breadth and integrity of an academic offer.
3. Building a Pipeline for Higher-Value Activities
In some cases, international student recruitment may have low margins, but it helps establish relationships that lead to high-value postgraduate, PhD, or alumni outcomes. It may also feed research collaborations, business engagement, or future TNE ventures. But such pipeline logic must be based on more than hope – institutions need to measure conversion, retention, and downstream value.
4. Advancing Strategic Partnerships or Market Development
An institution might accept lower margins to anchor a presence in a high-potential market or strengthen a bilateral partnership with a key international institution, government, or agency. These efforts can open the door to broader collaborations – but again, they require long-term planning and evidence of value beyond headcount.
5. Delivering Mission-Aligned Social or Cultural Impact
Some universities recruit from particular countries or communities not because it delivers high surplus, but because it aligns with their mission: widening access to UK education, supporting development goals, or enhancing campus diversity. These are valid choices – but they must be recognised as such, and the trade-offs clearly understood.
A Checklist: Is Low-Margin Recruitment Worth It?
To support institutions in making informed decisions, I’ve developed the following tool – a series of guiding questions to assess whether low-margin recruitment routes or cohorts align with institutional strategy.
This is not a tick-box exercise. Rather, it’s a framework to prompt a more strategic, evidence-based approach to planning.
The Danger of Denial
The real issue isn’t low-margin recruitment as such – it’s unexamined recruitment. Too often, institutions recruit internationally based on historic patterns, copying what others are doing or perceived opportunity, without fully evaluating cost, risk, or alignment with institutional strengths.
As pressures continue to mount, universities need to treat international recruitment with the same rigour they apply to research, teaching, and estates: as a strategic investment with benefits and risks. That starts with honest internal conversations about why we recruit, who we are recruiting, and what success looks like.
Conclusion
Low net revenue doesn’t automatically mean bad recruitment. But it should always prompt a question: Is this worth it – and why?
By adopting a more mature and transparent approach to international student recruitment strategy, UK universities can balance growth with sustainability, manage risk, and ensure they are maximising both financial and non-financial returns from their global engagement.
Catch up here on HEPI’s Weekend Reading on ‘Imperfect information in higher education’.