Expedia's former marketing director Beverly Shaw appointed the agency just over two years ago. She left in 2003 after being moved to a European role at Expedia's parent company IAC Travel, and was replaced by Elysa Chowdhury, who was promoted to the job from marketing manager last July.
It is understood that Chowdhury, who previously worked at Premier Foods on its Typhoo brand, has consistently clashed with CHI over almost every strategy and campaign for the brand, and was the catalyst for the agency resigning the business.
Since CHI was appointed, Expedia's advertising budget has grown from £4m to £12m. Last year it launched its biggest advertising campaign under the strapline 'Create your perfect trip'. This activity was overseen by Expedia's interim marketing director, Rebecca Butler, and was launched before Chowdhury was promoted.
In a joint statement, CHI managing partner Johnny Hornby and Expedia managing director Dermot Halpin said they have 'both agreed the future creative direction for the business was probably best pursued separately'.
CHI will continue to handle Expedia's advertising until another agency has been appointed. The decision does not affect the online travel company's media buying, which is handled by PHD.
Expedia, which launched in 1998, has one of the highest media spends in the travel sector. It enables consumers to create their own holidays by purchasing each segment separately and competes with traditional tour operators and online brands such as ebookers and Travelocity.
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