The aim of the current study is to examine the effects of competitive advantage and digital marketing on tourism business performance (BP). The indirect effect of supply chain management (SCM) is also considered by the current study. Quantitative research approach is used and data collection is made through a survey instrument. 225 responses were received and used in data analysis to examine the relationship between variables. Five direct effect hypotheses and two indirect effect hypotheses are tested in this study. Smart PLS is used to test the direct and indirect relationship. It is found that; competitive advantage has a positive effect on BP. It also has a positive effect on SCM. Furthermore, digital marketing has a positive effect on BP. Similarly, digital marketing has a positive effect on SCM. Additionally, SCM is a mediating variable between competitive advantage and BP of the tourism industry.

The firms and the industries still using the ways and means of promotion and publicizing the products have still not achieved the level of success as the modern means of social media is providing in creating a huge demand for their products. This study involves the modern means of communication agility promises success, development, and significance of the product in an efficient manner. Social media plays a vital role in creating a demand for the products by explaining the need of the product and a very effective source of creating a link among industries, firms, management, employees and especially the individual ones who come to know the skills and expertise. The impact of social media in strengthening the relationship with the customer has been very keenly observed and the findings show that such research has detailed that the use of social media has influenced the internal and the external capabilities. The data gathered in this study shows that the firms and the industries using the approach of social media have a revolutionary impact on building and strengthening the relationship between the customer and the management, employees. This study shows a strong bond between a firm and the customer using social media.