The article presents a scientific discussion on trends and prospects for product innovation in the tourism business. The main objective of the study is to substantiate the nature and role of innovative tourism products in improving the efficiency of economic and product activities of tourism enterprises, the need for their implementation in tourism at its present stage in Ukraine. Analysis of literature sources and existing approaches to solving the problem of implementation of innovative products by tourism enterprises allowed us to formulate conceptual tools in this area, taking into account industry specifics, to characterize the types of product innovations of tourism enterprises. The topicality of solving this scientific problem boils down to the fact that in conditions of competition, the development of tourism business is ensured primarily by the use of product innovations by tourism enterprises, the introduction of effective ways to implement priority areas of innovation. The study of the problem of implementation of innovative tourist products in the practical activities of enterprises is carried out in the following logical sequence: the subject matter and types of innovative tourist products have been analysed, the main prerequisites for their implementation in the activities of enterprises have been defined; the main trends in the development of innovations in the tourism business of Ukraine, in particular, new tourism products and innovative approaches used to retain regular customers and attract new ones in a competitive environment; an optimal model of implementation of innovative tourist products has been developed. The methodological tools of the conducted study were general theoretical and specific methods, in particular, logical and dialectical, graphoanalytical method, method of scientific abstraction, systemic and integrated approaches. The study covered the period of 2010—2019. The object of research is an innovative tourist product that allowed implementation of its model taking into account the effect of external and internal environment. The article presents the results of empirical analysis of the main trends in the development of innovation at the present stage of development of the tourism business in Ukraine. In addition, there are reasons that inhibit innovation in tourism, which must be taken into account for the development and implementation of innovative tourist products. The study theoretically proves and supports that the development of innovative activities and the introduction of innovative tourist products provide tourism enterprises with competitive advantages. The results of the study can be useful in the practical work of travel agencies that seek to create a portfolio of innovative products and increase the efficiency of their activities.