Six years ago McGill University’s Desautels Faculty of Management took the unprecedented decision for a Canadian business school to raise its MBA fees to a level that would make the course self-funding.
The rise, from C$22,000 in 2010 to C$79,500 by the time of the 2015 student intake, was a risky strategy for the Montreal-based university, which had previously relied on grants from the Quebec government to cover the MBA course costs. However, rather than undermine demand, the almost fourfold increase in fees has seen a rise in the number, global reach and quality of student applications.
This year Desautels is on course for a record number of MBA applications, up 15 per cent on the previous 12 months, according to Don Melville, director of the MBA and masters programmes. Raising the price has raised the perception of the MBA’s value, he says.