Chinese Tourism Transnational Business Model Innovation

China has grown into a giant outbound tourist generating country which has drawn worldwide attention, but it still remains as a dwarf as far as transnational tourism operation is concerned. The result of this contrast is an outflow of more than 30 billion dollars' consumption which equals almost one third of direct foreign investment in China. What caused this contrast? Is it necessary to change this situation? What approaches could improve the present case? Should we follow western ways or be innovative from the perspective of strategy and development approaches? How can we initiate the innovation if needed then? All of these questions have to be analyzed from the academic point of view.Based on research review of worldwide publications, investigation of representative domestic tourism enterprises, research on successful development of transnational tourism groups, the author's on the spot investigation abroad and questionnaire collected from tourists and experts, this paper places the relationship of Chinese outbound tourism market and transnational operation development in a more macro and realistic level. For the first time it systematically and profoundly analyzes key factors that affect Chinese tourism transnational operation and its internal mechanism from tourism industrial features such as area locking and reliable commitment as well as some Chinese specialties in terms of development space, scale of domestic needs and government impact in the stage of industrial transformation. This paper provides argumentation to current major domestic opinions on tourism transnational operation, re-presents the relationship between outbound tourism and transnational operation, and explains the parallel phenomenon of flowing in and going out from the perspective of global advantages exchange, individual benefits and holistic strategy. It also has categorized research on reputation signal mechanism of countries with different development levels, and summarizes key influential factors on this signal mechanism.Considering present capabilities of Chinese tourism enterprises and changed international competition environment, this paper presents the necessity of improving traditional and narrow minded strategy of market following, focuses on global localization, gives transnational operation overseas enterprises correct strategic positioning through strategic alliance to break into host countries' external networks and take overseas subsidiaries' role of listening post to the full play, and finally to promote active development of transnational operation. This paper also points out that in the lack of advantage of traditional transnational operation, Chinese tourism transnational operation should be built on cluster symbiosis and inosculation, draw the experience of development of China town in the past hundreds of years, adopts innovative investment approaches such as embedded cluster, newborn cluster and block cluster, forming multi-industry, specialized and diversified innovations and effectively promoting growing capabilities of Chinese tourism transnational operation enterprises.The paper theoretically analyzes the role played by the government at the current stage of Chinese tourism transnational operation from Porter's diamond model. To promote the development of transnational operation, external aid platforms such as Sino-Africa forum should be made good use of. Enterprises of different size could have diversified transnational operation goals and gain success from the perspective of scale economic transformation. Learned from the development practice of overseas renowned transnational tourism group, business positioning has outstanding value compared with leisure positioning, and organizing positioning is superior to reception positioning, therefore flagship value, leadership value and business value are built as three criteria in the course of positioning choice during transnational operation for Chinese enterprises.