Purpose: The purpose of this study is to investigate the influence of social media marketing activities on customer equity and how that drive affects purchase intention in the context of the hotel industry with the perspective of Y-Generation. Design/methodology/approach: An explanatory, deductive, quantitative research approach and cross-sectional research design were utilized within this research, where self-completed questionnaires were distributed online with a number of 136 valid responses collected. Findings: The research found that social media marketing activities positively affected customer equity in the context of hotel industry. Brand equity and relationship equity had positive influence on customer’s purchase intention. Finally, information richness negatively moderated the relationship between social media marketing activities and purchase intention. Research implications/limitations: The main implication of this research is social media marketing activities should be utilized as an effective marketing strategy to enhance customer equity. In addition, for hotel managers, creating emotional tie with brands and building bond with customers are supposed to take priority. The main limitation of this research is the language barriers and the research is considered not to be generalized since most respondents are students. Future research: Further research could investigate how social media marketing activities influence other industries and also investigate other different consumer groups such as X-Generation. Sociodemographic variables such as gender, income, backgrounds could be used as moderators in future. Cultural difference is  interesting to go depth regarding to this topic.