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The use of social media in the hotel industry comprises a great challenge for marketing executives. The primary purpose of this study is to examine the use of social media (SM) among hotel firms, the role of organisational characteristics in SM adoption, and then the impact of SM adoption level on hotel performance outcomes. Using a sample of 60 small and mid-sized hotels located in Crete Island, Greece, we collected data through a questionnaire designed for hotel managers. The findings revealed that hotels are increasingly adopting social media. The results also indicated that the degree of previous experience and the satisfaction from the use of SM are highly related to SM adoption, while hotel size and hotel rating do not have a significant effect on social media adoption. Also, the adoption level of social media is an effective determinant of performance benefits. Managerial implications are being provided for tourism marketing and for hoteliers who want to adopt social media marketing tools.

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