Social media has totally changed the way companies relate to the market, opening a vast array of new opportunities for firms to reinvent customer interactions. The strategic use of platforms like Facebook, Twitter, or YouTube can facilitate business transformation, improving the management of customer relationships, brand image, and enhancing customer retention. Although research on social media has greatly evolved in recent years, there is still some skepticism regarding the real value it can create for firms. To shed light on the topic, drawing on a sample of 212 Spanish hotels, the chapter examines what are the main social media tools used in this sector and what is the impact of using these platforms in promoting customer engagement behaviors. The chapter offers relevant implications for theory and practice.