The Pulse of Higher Ed

By Dave Jarrat

The higher education landscape is arguably the toughest it has been in a generation, marked by economic instability, demographic decline, and the constant imperative for greater efficiency. The 2026 Landscape of Higher Education Report confirms this volatile reality: beginning in 2026, many institutions will face a sustained decline in traditional-aged undergraduates. Enrollment growth is now concentrated in new markets, such as adult learners seeking rapid reskilling and the millions of Americans with “some college, no credential”.

Despite these pressures, the budget picture for online enterprises is not entirely bleak. The Benchmarking Online Enterprises (BOnES) Report highlights an opportunity, noting that median budgets and revenues for online enterprises increased markedly between 2024 and 2025. The money is being spent, but it’s shifting to areas that promise a clear return on investment. To succeed in 2026, partners must pivot from pitching “nice-to-have” services to positioning themselves as essential solutions that directly address the core institutional pains of revenue generation and operational efficiency.

The AI “Gold Rush” is Here (But It’s Specific)

Artificial Intelligence has swiftly moved from experimental technology to an operational necessity. Data from UPCEA and Search Influence reveals that many prospective students are already using AI-powered tools on a daily or weekly basis to research education programs. For online enterprises, the focus is squarely on efficiency: the BOnES Report shows that AI use is most concentrated in teaching and administrative functions.

Partners should stop selling generic “AI features” and instead focus on delivering quantifiable value in two key areas: visibility and efficiency. This means pitching AI search optimization that ensures a school’s programs rank prominently in AI-generated overviews. It also means offering AI-powered solutions like advanced chatbots that can handle prospective student queries at 3 a.m., reducing the need for additional administrative staff and plugging holes in the student journey.

The “Leaky Bucket” of Inquiry Management

One of the most immediate and fixable drains on institutional revenue is the “leaky bucket” of poor inquiry management. The Enrollment Process Review Secret Shopper Analysis shows that response rates declined across most inquiry types in 2025. This lack of responsiveness represents a massive amount of lost revenue potential.

Partners have a clear path to becoming essential by offering solutions that directly plug these revenue holes. This includes full CRM optimization, automated lead nurturing sequences, and “mystery shopper” audits to diagnose the specific breakdowns in an institution’s process. The core of the pitch must be fixing the “speed to lead” problem by transforming poor responsiveness into a seamless, modern, and personalized engagement experience.

Staffing vs. Outsourcing: The “Nested” Unit Opportunity

Institutional structure is a major driver of spending and inefficiency. The BOnES Report highlights a complex web of governance, with most institutions operating on an academically decentralized model and nearly an even split between administratively decentralized and centralized operations. Decentralization can enable responsiveness, but it often creates overlapping responsibilities and competing priorities.

Corporate Partners must tailor their pitch based on this structure. “Standalone” units are focused on revenue maximization, while “Nested” or highly decentralized units require tools for coordination, efficiency, and managed services to manage internal chaos. Managed services can fill critical staffing gaps, particularly for specialized roles like instructional design. Offering “fractional” staffing or managed services can provide the quick, high-impact efficiency gains these decentralized units desperately need.

The “Career Outcomes” Mandate

Public skepticism about the value of higher education continues to deepen. In this environment, the connection between education and immediate career outcomes has become a mandate for institutional survival. The BOnES Report notes that program portfolios remain anchored by graduate degrees and certificates, but many institutions are also sustaining broad adoption of microcredentials.

Any partner offering content, curriculum development, or labor market data must tie their solution directly to employability. The goal is to help institutions rapidly launch the high-demand, career-aligned programs—such as those in healthcare or business—that they are desperate to develop to replace enrollment declines in other areas.

The “Some College, No Credential” Market

The single most significant growth opportunity available to institutions is the massive, untapped “Some College, No Credential” market. The 2026 Landscape of Higher Education Report identifies millions of Americans who have some college experience but no degree as a significant scalable opportunity for growth.

These adult learners represent a student population that is already familiar with higher education but requires specific, targeted support to re-enroll and complete their degree. Partners should focus their pitches on retention and re-enrollment solutions. This means offering services that are designed to help institutions find, bring back, and, most importantly, keep these adult learners through flexible, career-focused, and student-centric support.

Conclusion

The days of being a “nice-to-have” vendor are over. The modern higher education budget is reserved for partners who can demonstrate a clear and immediate return on investment, whether through direct revenue generation or operational efficiency. 

As you review your 2026 sales strategy, ask yourself: Does your pitch speak to the efficiency imperative, address revenue protection gaps, and directly solve the challenges of serving the complex “Modern Learner”? The partners that will survive and thrive in the coming years will be the ones that have proven themselves essential.

Dave Jarrat serves as a Senior Fellow for UPCEA and as a Strategic Advisor to a broad range of higher education institutions and organizations, including the University of Cambridge, Edquity and Scholarships360. He is a social impact executive focused on improving educational opportunities and outcomes for historically underrepresented populations.