Keywords
return on investment, ROI, education investment, hospitality and tourism, value of education, Rosen College of Hospitality Management
Abstract
Increasing concerns regarding the value of higher education in the USA 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 two years if they pay 20% of their salary toward their debt. A more valid and reliable education ROI calculation method is proposed for the USA and other countries where students must pay tuition and acquire loans to cover their educational expenses.
Publication Date
12-16-2014
Original Citation
Asli Tasci, Abraham Pizam and Robertico Croes. (2016) "The Return on Investment for Undergraduate Degrees in Hospitality and Tourism Management," Tourism Economics Fast Track, DOI 10.5367/te.2014.0447
DOI
10.5367/te.2014.0447
Document Type
Paper
Language
English
Source Title
Tourism Economics
Copyright Status
Publisher retained
Publication Version
Pre-print
Copyright Date
2014-12-16
College
Rosen College of Hospitality Management
Location
Rosen College of Hospitality Management
STARS Citation
Tasci, Asli D.; Pizam, Abraham; Croes, Robertico; and Chen, Po-Ju, "The Return on Investment for Undergraduate Degrees in Hospitality and Tourism Management" (2014). Rosen Faculty Scholarship and Creative Works. 281.
https://stars.library.ucf.edu/rosenscholar/281