Administrative and Support Service Activities industry

About the industry

This industry includes executive search and placement activities, and activities of theatrical casting agencies. It excludes the activities of agents for individual artists.

Employment activities division includes activities of listing employment vacancies and referring, placing applicants for employment, where the individuals referred or placed are not employees of the employment agencies, supplying workers to clients’ businesses for limited periods of time to supplement the working force of the client, and the activities of providing other human resources. This industry includes executive search and placement activities, and activities of theatrical casting agencies but it excludes the activities of agents for individual artists.   

Travel agency, tour operator and other reservation service and related activities division includes the activity of agencies, primarily engaged in selling travel, tour, transportation and accommodation services to the general public and commercial clients and the activity of arranging and assembling tours that are sold through travel agencies or directly by agents such as tour operators; and other travel-related services including reservation services. The activities of tourist guides and tourism promotion activities are also included.   

Security and investigation activities division  includes security-related services such as investigation and detective services; guard and patrol services; picking up and delivering money, receipts, or other valuable items with personnel and equipment to protect such properties while in transit; operation of electronic security alarm systems, such as burglar and fire alarms, where the activity focuses on remote monitoring these systems, but often involves also sale, installation and repair services. If the latter components are provided separately, they are excluded from this division and classified in retail sales, construction, etc. 

Increasing trend in industry globalization 

The Turkish Administrative and Support Service Activities industry (especially the travel agency and tour arrangement, rental and leasing, and employment activities sub-sectors) has undergone significant structural changes over the last two decades.

Digital (online) platforms have made it easier for service providers to sell or contact directly to consumers. Heightened price competition from online service providers has reduced industry commissions and service fees. Store-based industry service providers have responded by reducing costs and prices, while transitioning to online operations and a fee-based business model.

There are many existing and new service providers are coming into the market. Moreover, there is no requirement for high capital requirement in the industry, which makes entry to industry easy for new entrants. However, larger industry players have become increasingly prominent as many companies have been able to increase their scale in line with rising customer acceptance. 

Low degree of capital intensity

Capital intensity is an indicator of how much capital is used in production as opposed to labor. The level is stated as high, medium or low. TurkAnalitik classifies industries’ capital intensity as the proportion of total personnel costs to total purchases of goods and services. A high degree of capital ratio indicates that industry utilizes more of capital resources than labor resources in producing its revenues and vice versa for a low degree of capital ratio. TurkAnalitik classifies the Turkish Administrative and Support Service Activities industry as an industry with a medium degree of capital intensity; the proportion of total personnel costs to total purchases of goods and services is nearly 47 percentage points.