Tuition Discounting to Optimize Enrollment and Revenue

Abstract

As the borders between higher education systems continue to erode and competition for qualified students increases, many institutions are exploring variable pricing options, known in the USA as “tuition discounting.” The goal of tuition discounting is to use institutional funds to attract and retain desired students while maximizing net revenue to the institution. Recent changes in higher education funding and tuition structures in non‐US countries have led to interest in how to most effectively allocate institutional aid. This article outlines the basic concepts of tuition discounting, and shares insights for institutions that might be considering this option.