Azure Traffic Manager is a cloud-based service that helps manage the distribution of user traffic across multiple Azure services and applications. It improves the performance and availability of applications by directing users to the nearest or best-performing endpoint based on various routing methods, such as geographic location or performance metrics. This service enhances user experience by reducing latency and ensuring high availability. If one endpoint becomes unavailable, Azure Traffic Manager can automatically reroute traffic to other healthy endpoints, ensuring that users can still access the application without interruption.