Aim: The Internet has provided a medium for word of mouth and its electronic extension, also known as viral marketing. In the hospitality and tourism industry, use of the internet has caused drastic changes. Consumers are now more used to gathering information about their destinations through online word of mouth The aim of this thesis is to achieve an understanding of the concept of viral marketing and its suitability, as well as its primary link the concept of word of mouth and its relevance to customer relations, in the hospitality and tourism industry of Sweden.

Method: A qualitative research approach was used for compiling the primary data of this thesis. Semi-structured face to face interviews as well as structured email interviews were used to gather the empirical findings from two case companies. Secondary data for the theoretical study of this paper was gathered from scientific journals, books and the Internet.

Result & Conclusions: The hospitality and tourism industry rely more on word of mouth advertising because of the intangible nature of their services. Therefore, they aim to exceed customer satisfaction so as to generate positive word of mouth. The concept of viral marketing is minimally utilized at the moment, but its use is more likely to be maximized in the future.

Suggestions for future research: The results of this thesis were based on a small sample size of the representatives of the hospitality and tourism industry. It would be advisable in the future to conduct a quantitative or a combined qualitative and quantitative study with a bigger sample size that would also include the opinions of the customers.

Contribution of the thesis: This research delivers realistic consequences from the diverse extension of internet users in the Swedish hospitality and tourism industry and finally indicates the promising benefits from the distribution of internet technology in combination with the involvement of individuals.