A Study On Product Innovation Of Travel Agency

Travel agent industry has been the most typical and concerned one in China's tourism industry. With increasing diversity of tourist market demand, the competition in our domestic travel agent industry is becoming increasingly fierce and the business performance is decreasing day after day. To improve current operation status of travel agencies, the study on product innovation of travel agency has been gradually focused on by our domestic scholars, but the research in this field is not yet mature. In this paper, the author chose to study on product innovation of travel agency, not only to investigate how to create product differentiation through innovation by travel agency, but also to explore a mode of product innovation for travel agencies to maintain and expand their product differentiation, so as to achieve their core competitive advantage.Based on this purpose, the paper starts with redefining the concept of product of travel agency, by making product of travel agency subdivided into external product and internal service of travel agency. Meanwhile, internal service innovation will be defined as the main dimension of product innovation of travel agency. Through summarizing service innovation theory, the paper has put forward the direction of product innovation of travel agency, production method choice of travel agency, as well as the four-dimensional framework of product innovation of travel agency. On this basis, combined with current status of product innovation of China's travel agencies, the author has set up a product innovation mode for China's travel agencies. In the end, CYTS, as a representative in domestic travel agent industry, is selected for case study, to test the validity of the product innovation mode set up in the paper.