The change of agency is a precursor to a massive expansion in Expedia's UK marketing budget. The site spent about £1.6m in the past 12 months, according to Nielsen Media Research, but advertising spend is expected to exceed £10m over the next year.
Online media buying is to remain with MPG through its Media Contacts division and there are no changes to the rest of Expedia's agency roster. Clemmow Hornby Inge is responsible for creative, Arnold Interactive handles digital marketing, and PR is managed by The Red Consultancy.
Clemmow Hornby Inge was hired at the start of this year, following the appointment of Beverly Shaw as marketing director last October.
In April, the agency created the multi-million-pound 'What's your perfect trip?' branding campaign, Expedia's biggest to date. The campaign aims to tap into what motivates travellers when they are making choices about holidays.
The growth in marketing activity was behind the decision to appoint PHD, which can offer access to specialist divisions in research, online sponsorship and events, providing Expedia with a virtual marketing department.
The move is another blow for the struggling Media Planning Group. Last week, it learned it had lost the £58m Orange media account, raising questions about the viability of the UK division and Media Planning Group's ability to compete for pan-European business (Marketing, October 2.)
It has been suggested that it will be forced to merge with a UK independent agency, tipped to be Walker Media.
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