The company is keen to expand its online offering to strengthen its position against rivals including Travelocity, eBookers and lastminute.com.
It is believed that Profero will develop a digital strategy aimed at boosting visitor numbers to Expedia's website in the run-up to its 10th anniversary in 2009.
Profero declined to comment, but it is understood that it will work with Expedia, which does not have an incumbent digital agency, on a project basis.
Last summer Expedia embarked on a £2m integrated campaign across TV, outdoor and press to coincide with an overhaul of its website. The activity featured the brand's blue sky and cloud visual identity and used the strapline 'Let yourself go'.
Expedia spent £14m on advertising in the UK last year, according to Nielsen Media Research. The lion's share was split between national press and TV.
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