Given the rapid development of competition, organizations are in urgent need for creating 
viable new concepts, activities, and practices. In recent years, innovation has emerged as 
a pressing theme for most organizations involved in service industry. Technological 
innovation competencies are being required in all fields and at all levels in tourism and 
hospitality industry. This study aims to examine the influence of technological innovation 
on tourism and hospitality enterprises' performance in Egypt. Quantitative approach is 
used to achieve the aim of the study. Questionnaires were distributed and collected from 
managers in travel agencies category 'A' and five star hotels in Egypt. The main findings 
of the study are: product and process innovations have a significant effect on production, 
financial, and market performance of Egyptian travel agents and hotels. This study is 
useful for tourism and hospitality organizations that are in imperative need to improve 
their performance. This study is contributing to knowledge by providing insights from 
tourism and hotel sector in a developing country, Egypt.