Although internet marketing dates back to 1991, when it enabled business communication and web search, it especially flourished 10 years ago with the strengthening of promotion through social media in hostel industry. Internet marketing has become not only an option, but also a necessity in order for hostels to position themselves in the global tourist market. Online advertising is an increasingly common and successful way of advertising businesses. The biggest advantage of the Internet is that it has enabled small companies to successfully and affordably provide visibility of their products and services and compete in the international market. In internet marketing, it is possible to advertise only to the market segment with specific interests that we know is likely to buy a product or service. The premise of the paper is that more frequent and diverse social media content can get more followers on the site and help hostels to have better business performance. Frequent publishing of content, not only gives a better insight to tourists or site visitors into the accommodation facility itself, but also strengthens the image of the hostel in the general public. To confirm these thesis, current theoretical knowledge will be researched and an analysis of how hostels manage content on social networks will be given. The primary research was conducted by observation method of content on selected social networks, on a sample of 30 hostels in the Republic of Croatia. Facebook and Instagram were selected as representative social networks. In addition, the research was conducted with a questionnaire on a sample of 25 hostels, among previously 30 researched, to determine the opinion of hosteliers about the impact of content on social networks on business performance.