The Truth about Application Volume

The market for graduate management education is constantly evolving, with trends in application volume to MBA programs responding directly to cyclical changes in the economy.

To keep up, the Graduate Management Admission Council® (GMAC®) conducts a global survey of business schools each June to track application trends, acceptance and enrollment rates, and the applicant pool composition.

The most recent data gathered from business programs participating in our 2010 survey reveal a mixed portrait of the demand for graduate management education. Nearly half of programs reported rising application volumes for the 2010–2011 school year and about 40% experienced a downward trend compared with 2009.

Among MBA programs, executive MBA—EMBA— are witnessing the most positive growth in volume, with 59% of programs receiving more applications in 2010 than a year ago, reversing a three-year decline. Online MBA programs are seeing growth in the number of applicants and application volume for flexible MBA programs in 2010 remains even with last year (these programs combine full-time and part-time course options).

The proportion of part-time programs showing growing application numbers compares evenly to 2009, suggesting they may be poised for a turnaround in application volume that had slowed over the past two years. After peaking in 2008, the percentage of two-year full-time programs reporting an increase in applicant volume declined for the second year in a row, as the recession rippled through the world economy.

Other master’s programs in business are continuing their positive trends seen in 2009; in fact, more than 60% of master-level programs in accounting, finance, and management reported higher application numbers for 2010.

• Applicants to EMBA programs—designed for mid-career professionals—had the most work experience—the majority of applicants (61%) had more than 10 years in the workforce. The vast majority of 2010 EMBA applicants (81%) were 31 years or older.
• Full-time MBA programs continue to report the greatest proportion of foreign (by citizenship) applicants among MBA programs—52%, on average. A typical full-time MBA applicant was between the ages of 26 and 30 (43%).
• Executive MBA programs in the United States, followed by part-time and full-time programs, reported the greatest percentage of racial minority candidates in their applicant pool (21%–16%) compared to other US on-campus programs.
• Proportionally more women applied to part-time and flexible MBA programs (38% each) than to other types of MBA programs.
• Flexible MBA programs had the largest proportion (43%) of applicants who were 25 years or younger, on average.

The quality of this year’s applicant pool remains high with nearly all MBA programs (91%) reporting that applicants in 2010 were either more qualified than or had the same qualifications as applicants in 2009.

The annual GMAC Application Trends Survey asks business schools’ graduate programs to report the volume of applications they have received in the current year. In 2010, we surveyed 665 graduate management programs from 327 schools around the world, including 476 MBA programs.

Here’s a snapshot of how many applications MBA programs received, how their application volume changed from 2009 to 2010, and how many candidates were accepted for different types of MBA programs:

• The average number of applications to full-time programs—704 applications per program— is the highest among all MBA programs. Two in five programs (44%) reported an increase in the number of applicants in 2010. Although the average number of applications per program declined marginally by about 2%, program selectiveness remains as competitive as ever—comparable to previous years, full-time MBA programs extended an offer of acceptance to an average of 47% of applicants. First-tier MBA programs (the top 50 programs based on average media rankings) accepted, on average, only 28% of candidates.
• Part-time programs received an average of 185 applications per program with two in five programs (43%) reporting an increase in the number of applications, which was comparable to 2009. Part-time MBA programs extended an offer of acceptance to 69% of their applicants, on average.
• Executive MBA programs received an average of 97 applications per program, mainly from applicants with 10 or more years of work experience (61%). Nearly three-quarters of EMBA applicants, on average (73%) received an offer of acceptance.
• Flexible MBA programs that combine full-time and part-time on-campus options for students received an average of 192 applications per program. Flexible MBA programs accepted, on average, 64% of their applicants in 2010.

To read the most recent GMAC 2010 Application Trends Survey, click here.