Business schools have traditionally relied on application volumes to measure interest in their programmes. However, new findings suggest that charging prospective students an application fee could help universities attract more committed candidates and improve enrolment outcomes.
The 2025 Admissions Conversion Benchmark Study, conducted by student recruitment firm and software company Full Fabric, analysed admissions data from 19 leading business schools across nine European countries. The institutions included ESCP Business School, the University of St Gallen, IMD and Warwick Business School. The study found that programmes charging an application fee received fewer applications but converted a higher proportion of admitted candidates into enrolled students.
The findings highlight a broader challenge for higher education institutions: attracting prospective students is only the first step. Universities must also persuade admitted candidates that their programme is the right investment in their education and careers.
Application Fees Linked to Higher Enrolment Rates
According to the study, 66% of the programmes analysed charged an application fee, with the median fee standing at €100, or approximately £85.
Compared with similar programmes that did not charge an application fee, fee-based courses received around 10 percentage points fewer applications but recorded an enrolment rate approximately 12 percentage points higher among admitted candidates.
The findings suggest that application fees may discourage some candidates from submitting applications without a strong intention to attend. Applicants who are willing to pay may be more serious about the programme, although the survey does not establish that the fee itself causes higher enrolment.
Tania Roquette, co-author of the report and vice-president at Full Fabric, said programmes charging application fees tended to attract more committed applicants and convert offers more effectively.
For business schools, this distinction matters. A large applicant pool can demonstrate demand, but it does not necessarily translate into a full classroom or predictable tuition revenue.
Why MBA Programmes Face an Enrolment Challenge
Full-time MBA programmes received approximately four submitted applications for every available place, making them the most competitive programme category in the study.
However, the admissions process revealed a significant drop-off between initial interest and final enrolment. Around 20% of prospective applicants started an application, while 33% of those who began submitted it. Of submitted applications, 62% resulted in an offer, but only 51% of admitted candidates ultimately enrolled.
This means that even after investing time and resources in reviewing applications and extending offers, business schools may lose nearly half of their admitted candidates.
Competition between institutions contributes to this challenge. Applicants may receive offers from five or six business schools and compare tuition fees, scholarships, career outcomes, location and programme flexibility before making a final decision.
The survey found that the highest enrolment rate among the schools analysed was 96% at the highest-ranked business school, demonstrating that conversion rates can vary substantially across institutions.
Universities Must Engage Students After Making Offers
The report argues that universities cannot afford to go quiet once they have offered a candidate a place. Continued communication during this stage may help students feel more connected to an institution and better prepared to begin their studies.
Business schools can support prospective students by providing timely information about accommodation, visa requirements, financial planning, career services and onboarding. Opportunities to interact with faculty, current students and alumni can also help candidates assess whether a programme meets their expectations.
The study further points to the value of flexible learning options. As professional and personal circumstances change, some students may benefit from being able to move between full-time and part-time study formats where institutions permit it.
Shorter courses are also becoming relevant to business schools as employers reconsider how they fund employee education. Micro-credentials and executive programmes can offer alternatives for learners seeking targeted skills without committing to a full degree.
The Financial Implications of Better Conversion
Improving enrolment conversion can have a direct financial impact on universities. The report estimates that a five-percentage-point improvement at a single stage of the admissions process could bring an additional 22 to 24 students into a median bachelor's programme, generating up to €880,000 in additional tuition revenue. The estimated financial gains for other programme types range from approximately €150,000 to €490,000.
These figures underline why universities are increasingly examining the entire admissions journey rather than concentrating solely on marketing and application numbers.
However, charging application fees also raises questions about accessibility. Fees can add to the cost of applying, particularly for students considering several institutions or those from lower-income backgrounds. Universities may need to consider waivers or targeted support to ensure that application charges do not unnecessarily restrict access.
What the Findings Mean for Higher Education
The study does not establish that application fees will improve enrolment at every institution. Its findings are based on 19 leading European business schools and may not apply equally to undergraduate admissions or universities operating in different markets.
Nevertheless, the results offer a useful lesson for admissions teams: successful recruitment depends not only on the number of applications received but also on how effectively universities support candidates through the decision-making process.
For business schools competing for students in an increasingly flexible education market, the priority may be to build trust, communicate value and maintain meaningful engagement after an offer is made.
