Abstract: Tourism industry has found its way into the national strategic system and is developing towards the strategic pillar industry of national economy and the modern service industry that can better satisfy the masses. Travel agencies are faced with the transformation from providing consumer service into contracted production service, and the service innovation is one of the key drivers of the transformation. Taking the widely applied 4D Service Innovation Model as the theoretical framework, this paper conducts an empirical analysis of the types, features and problems in the service innovation of travel agencies through deep-interviews and participative observations with professionals who are involved in the organization of MICE. The results indicate that the invalid operations, backward technological means and insufficient input resulted from the reform of service transmission system, i.e., the organizational structure, are the key factors restricting the service innovation of travel agencies. Further analysis of the main points of implementing draws such a conclusion that the integration of the reforms of structure, personnel and technology at the height of strategy is the essence of keeping the innovative competitiveness for travel agencies.

Key words: travel agency transformation; service innovation; MICE