The return on investment for undergraduate degrees in hospitality and tourism management

Asli D. A. Tasci, Abraham Pizam, Robertico Croes and Po-Ju Chen
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Asli D. A. Tasci: University of Central Florida, USA
Abraham Pizam: University of Central Florida, USA
Robertico Croes: University of Central Florida, USA
Po-Ju Chen: University of Central Florida, USA

Tourism Economics, 2016, vol. 22, issue 3, 505-526

Abstract: Increasing concerns regarding the value of higher education in the United States have motivated several organizations to calculate the return on investment (ROI) for college education by employing diverse methodologies. This study evaluates these methodologies by using data from a survey of alumni of Rosen College of Hospitality Management at the University of Central Florida. The results reveal that the highly publicized low ROI for college education might be inaccurate, confusing, and misleading for several reasons, among which is the assumption of zero income while studying, causing debt to be the total of a student’s expenses. Data reveal that Rosen College graduates who work in mandatory paid internships and hold part-time jobs could be debt-free within 2 years if they pay 20% of their salary toward their debt. A more valid and reliable education ROI calculation method is proposed for the United States and other countries where students must pay tuition and acquire loans to cover their educational expenses.

Keywords: education investment; hospitality and tourism; return on investment; ROI; Rosen College of Hospitality Management; value of education (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:sae:toueco:v:22:y:2016:i:3:p:505-526

DOI: 10.5367/te.2014.0447

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