Early Years Research releases Quarterly Performance Indicators Q2 2021

  • Australia’s first dedicated Early Childhood Education and Care (ECEC) data and insights portal releases its performance indicators for the second quarter of 2021.
  • Revenue for Long Day Care (LDC) saw growth this quarter, while the increase of 3.2% in Average Daily Rates (ADR) has effectively offset the 2% decrease in occupancy.

As Australia’s first dedicated Early Childhood Education and Care (ECEC) data and insights portal, Early Years Research (EYR) announced the release of its latest Performance Indicators Report for Q2-2021. The report provides childcare industries with the information required to formulate actionable insights and evidence-based strategies for business stability and growth.

The one-page Q2-2021 Performance Indicators Report is extracted from a sample size of 1,500 Long Day Care (LDC) services, aggregated, and anonymised to reveal quarterly trends in key performance indicators for childcare growth and operations—Occupancy Rates, Average Daily Rates (ADR), Enrolments, and capacity tracking. The report provides childcare operators with an all-encompassing view across all cities and states in the country.

The availability of such rich data enables those in the early learning sector to make insight-based decisions for service improvement, highlighting the latest gaps and opportunities in the industry.

Q2-2021 highlights include:

  • The current national revenue potential remains at $5,000 per place per quarter—$2,100 short of the potential revenue across centres in Australia.
  • Occupancy decreased to 71%, down 2% since Q1-2021. Nevertheless, the increase of 3.2% in ADR has offset the drop, allowing the daily Revenue Per Available Place (RevPAP) to come in at $83.
  • The most significant drop in occupancy of 16% Quarter-on-Quarter (QoQ) was recorded in Sydney, followed by a 9% fall in NSW. 
  • Only Queensland saw an increase in occupancy, showing a 5% growth despite a previous downtrend.
  • The 3.2% increase in ADR resulted in an average of $117 for centres across the country—showing further improvement from $108 in Q4-2020 and $113 in Q1-2021.
  • The average LDC enrolment duration was 13 months across Australia, a 28.6% drop from the previous quarter. SA, TAS, WA, and ACT recorded the longest periods at 14 months—still short of last quarter’s average of 18 months.
  • The percentage of new enrolments saw a decline as well, falling by 45.4% this quarter. Victoria has the highest number of new enrolments at 13% but is still far from Q1’s 22%.
  • NSW, Queensland, and Brisbane recorded the lowest percentage of new enrolments (up to 10%), with the highest rate of children on a waitlist (up to 7.7%).

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Mark Woodland, Xplor’s CEO of Education, said, “We believe everyone should have the tools they need to change the world. Education is a fundamental right, and we’re always pushing the boundaries of innovation so that everyone can learn, create and connect in new ways.” 

“Over the past 12 months, we’ve seen childcare services adapt to new needs, new methods of education and adopting technologies that help families stay connected to their children every step of the way. But what’s clear from the data is that childcare centres across Australia are still struggling to fill their empty spaces, despite increased demand from families this last quarter.”

A key finding from this quarter’s report is that there is a significant gap between actual and potential revenue for the ECEC sector. This finding is calculated by using Occupancy and ADR indicators, resulting in the Revenue Per Available Place (RevPAP).

At 100% occupancy, each centre can earn $7,100 per place annually. However, at 71% this quarter, the annual national RevPAP comes in at only $5,000. Areas with higher occupancy and ADR like NSW ($5,335) significantly outperformed other locations on the lower end of the spectrum, such as Victoria ($4,880).

To access the Quarterly Performance Indicators Q2-2021 report, click here.

About EYR

EYR.org is Australia’s first dedicated Early Years Research portal initiated by QikKids and Xplor. Its mission is to help childcare services conduct their business with accurate data, drawing relevant insights from over 10,500 services across Australia and New Zealand.

The Early Years Research team is helping Early Childhood Education and Care (ECEC) services achieve business goals by implementing insight-based strategies from its sector-wide studies spanning thousands of services. Since its introduction in 2018, the amount of data collected—and insights gleaned—has been groundbreaking.

Access all benchmark reports released by EYR on https://www.eyr.org/benchmark-centre/