The online travel company will enable users to view hotels and resorts in real-time before making a booking. It is currently testing the technology that will provide live streaming video of destinations, as part of a strategy to put potential customers closer to the places they plan to visit.
The facility is expected to go live in the UK within the next two weeks, before being rolled out to other European markets.
Expedia has hired ad agency Archibald Ingall Stretton (AIS) to work on the project and handle other "non-traditional" digital work across Europe. It aims to create online buzz around the brand and drive return on investment.
The appointment of AIS does not affect Expedia's retained agencies. In March, Essence was hired to handle the brand's pan-European digital creative and media planning and buying account, as part of a consolidation of its agency arrangements across 12 national markets.
Essence's remit covers Expedia's display, partnership, social media and mobile activity.
AIS will also work to improve Expedia's SEO and promote worldwide travel as well as short stays and city breaks.
Alex Gisbert, director of online partner marketing at Expedia, said: "It's important that we stay at the forefront of digital technology and customer experience."
Expedia's digital strategy forms part of an overall boost to its marketing activity. Last month the company ended its four-year break from TV advertising with a spot featuring a voiceover by Peep Show star David Mitchell.
The activity, created by Meteorite, Expedia's retained European creative agency, followed a global redesign of the travel operator's logo and websites in March.
Expedia was launched in 1996 and now claims to generate more leisure bookings than any other travel agency.
In the three months to March 2010 the company recorded a 13% year-on-year increase in revenue. The growth was primarily driven by a rise in hotel, advertising and media sales. Domestic revenue increased 5% while international revenue was up 31%.
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