Tour and Travel business opportunities are increasing along with the increasing public demand for tourism services. The tour and travel business is a company in the service sector that provides tourist travel services, transportation services and tourism information. One of the Tour & Travel Agents that experienced a tight competitive level both as a conventional business actor and the Online Travel Agent (OTA) was PT. Mega Wisata Tour and Travel, having its address at Center Point Blok M No. 02, Jalan Jawa, Medan Timur, Gg. Buntu, Medan Tim, Medan City, North Sumatra Every tourism industry has a different source of competitive advantage and must be careful in looking at market conditions in order to formulate the right strategy. Innovation is a change that includes creativity to create new products, services, ideas, or new processes developed inside and outside the company. Without innovation the tourism industry will die otherwise the tourism industry that innovates can dominate the market with tourism creations, models and performances. Implementation of innovation strategies is determined by consumer needs and trends in the present.The method used by the writer in this research is descriptive method and correlational method. The type of research used is quantitative research. Data analysis method used in the research are descriptive statistic, coefficient of correlation, coefficient of determination, linear regression analysis and hypothesis testing using Z test. The result of coefficient of determination (R2) is 0.542. It means that the 54,2% of competitive advantage is influenced by innovation and the remaining 45,8% is influenced by other variables outside this research. The result of hypothesis z-test indicate that Zcount value obtained is 4,87968 that will be compared with Ztable in amount og 1.96. Zcount (4,87968) is higher than the value of Ztable (1.96). Therefore, hypothesis alternative (Ha) is accepted that innovation has significant influence competitive advantage at PT. Mega Wisata Tour and Travel. PT. Mega Wisata Tour And Travel should pay attention towards the influence of innovation such as make a new travel trip, give a discount price, etc