Social Media is the fastest growing category of Internet Marketing in terms of attracting new users. It has not only become one of the critical tools to interact with customers but is also considered as one of the key elements impacting organic search and rankings. The social media strategy for hotels offers an opportunity to establish themselves as an expert in the market. Use of blogs, Face book, Twitter, YouTube video channels, Flickr photo profile, MySpace profile etc can help hotels establish themselves as a brand. An affirmative buzz is conceived through the exchange of data, content, report, blogs, RSS, etc. The interaction with your customers through various social media platforms makes it possible to identify their desires and interests. The social media strategy for hotels helps them to select some better marketing methods to get better results. Consumer reviews and user generated content still dominates hotelier’s view of social media. Search engines give higher relevance to businesses connected through different social media channels resulting in higher placement in search engines. Apart from these strategies, the pay per click management helps to run an end-to-end PPC campaign for the hotels and get the desired results by increasing traffic and brand awareness. With search engines, advertisers (hotels) typically bid on keyword phrases relevant to their target market. Websites that utilize PPC ads will display an advertisement when a keyword query matches an advertiser's keyword list. Social media optimization is the next generation of Internet Marketing.