EARLIER LAUNCH FOR CUBO 2024 BENCHMARKING

The launch of CUBO’s annual commercial services benchmarking survey is being brought forward to October in 2024 to provide universities with earlier information on the operation of their accommodation, conferencing, catering, retail, sport memberships, residence life and soft FM.

The CUBO Benchmarking Survey is a unique piece of annual research using data collected from member institutions. It is a means of sharing intelligence across multiple services with members and highlighting areas for further discussion within CUBO.

The 2024 survey will capture data from 2023/4 and available information for 2024/5. Participating institutions will have access to a digital dashboard, enabling comparison with the overall dataset as well as more customised reporting via a number of filters.

Headlines from the 2023/24 research

• The summary report shows commercial activity continuing to recover from the impact of the pandemic, with average total commercial income up by 31% in 2022/3. Catering services are playing a bigger contributory role in commercial revenue, though campus footfall is still impacted by the effects of hybrid working and proportionate performance is not back to pre-pandemic levels. Sports income is up 11% and conferencing income up 35%.
• According to PwC’s 2023 Student Accommodation: Availability and Rental Growth Trends, between January and October 2022 the actual price for a privately owned PBSA bed increased from £200 to £230 a week (+15%), though varying by location. By comparison, the CUBO survey shows year-on-year modal rents for participating members increasing by only 4% for undergraduates and 2% for postgraduates.
• 62% of respondents operated their catering outlets purely in-house, with 21% outsourced and 17% a blend of in-house, outsourced and / or franchised.
• Managing food costs continues to be a challenge for a sector trying to ensure great value and affordability to campus populations. Food inflation has driven up costs and reduced margin, salaries as a percentage of income remain high and wage rates are increasing at a higher proportion than income, making operational efficiencies a challenge.
• 66% of respondents offered a subsidised meal option in 2022/3, ranging from daily breakfast and lunch items to meal deals on specific days, with the most popular subsidies being hot lunchtime meals, and offers ranging between £1 - £3.25 for a meal, with an average of £2.23.
• The index of prices data shows a 2% increase across the sample basket. While rising prices for coffee (up 9%), Coca-Cola (+7%), and burgers (+ 6%) are indicative of the wider catering and hospitality sector, the 2022/23 data show a fall in the average minimum price of a simple sandwich, meal deal and bottled water, as universities have held firm on offering affordable menu options.
• Total conference income for the 30 respondents for 2022/23 was £54.0m, against £39.8m for the same respondents in 2021/22, with this growth coming more from dedicated facilities (+50%) than non-dedicated facilities (+ 27%). The average day delegate rate increased by £1 from £45 in 2021/22 to £46 in 2022/3, highlighting how the sector has held firm on rates at a time when costs are increasing.
• Respondents’ average residential income was £21.8m, a 5% decrease on 2021/22 but a 23% increase on the £17.7m average in 2018/19. Occupancy for 2022/23 averaged 96%, an increase from 92% in 2021/22. However, average occupancy as reported in October 2023 was 93%, reflecting the dip in student numbers across the sector.
• Demand remains largely consistent across rooms types. Catered double rooms showed the biggest variance in demand to availability, with an average application rate of 221%. This room type currently accounts for just 0.1% of respondents’ room stock (27 rooms). The greatest opportunity exists with catered en-suites, where the additional 13% demand over availability equates to 1,159 rooms across the combined respondents’ room stock, approximately 105 rooms per institution.
• Sports memberships have increased YOY at a rate of 13%, and the data also indicates a change in the breakdown of sports member types YOY, driven by increases in staff and public memberships, and tallying with external reports showing UK gym memberships rising.
• In 2021/22, 24% of respondents reported that sports membership was included in either fees or accommodation, compared to only 15% in 2022/3, which may account for the apparent lack of growth in student memberships.
• Swim pricing fell in 2022/23, although the respondent sample is small. Average student prices were down by approximately 20%, staff peak rates by 2%, public rates by 10% and nom-member rates by 9%.
• Responsibility for residents’ wellbeing normally sits with Accommodation Services (48%) or Student Services (22%), with 8% of respondents reporting it as a shared programme between multiple departments. For the remainder it sits across various areas including the Student Guild, chaplaincy and third-party accommodation providers.
• The 34 respondents reported a total of 149,765 students being served by a Residence Life programme at an average cost of £28 per head, up from £23 per head the previous year.
• 24 institutions provided financial data on residence life, with the annual cost of operating residence life programmes in 2022/23 averagingd £472,939 per institution, up 15% on 2021/22. However, the expenditure level across institutions differs greatly.
• Laundry services are the principal soft facility being contracted out at 84%, with the remainder of respondents operating in-house or a blended operation. The model for cleaning services is more balanced, with 47% in-house, 6% contracting out and 47% taking a blended approach.
• 57% of respondents managed security in-house, with 4% contracting out and 39% taking a blended approach, similar to 2021/22. 82% provided 24/7 cover, 18% provided out-of-hours cover only. 73% reported that security staff cover campus and accommodation areas, while 27% have separate security arrangements for each area.

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