Oh, they totally will. I also found out today that none of the franchise schools (which currently employ me) made a profit last year.
This is despite them already been massively overpriced for what you get. I also overhead a talk with the activities manager....so a big thing with schools, especially the less, uh, academically renowned ones, is that the social and events calendar can be a really big draw. The ones in Switzerland go all out on this, you would not believe the kind of events they put on, or how much they are willing to pay for high quality trips and events. Skiing lessons, caving, nature trails, trips to other parts of Europe...
Our department, on the other hand, is being allocated less than the cost of a single student's full year tuition fee. For 200+ students, in central London.