The account moves out of Optimedia without a pitch. Carat has held the company's buying account since July 1998 and has also previously carried out research on the Club Med brand.
The new relationship will start this month, with Club Med expected to spend approximately £500,000 on press, online and radio promotions.
Sarah Mason, marketing manager for the brand, said: "Club Med is looking to diversify its marketing activity with a focus on new media and Carat is well-placed to bring a more integrated campaign for 2003."
Club Mediterranee is France's largest travel and tourism company, and the global leader in all-inclusive holidays.
While the company is associated with holidays around the Mediterranean targeted at the 18- to 30-year old age bracket, it wants to place more emphasis on its extensive range of holidays.
The company is also trying to raise its profile as a family resort provider and in November of last year hired Synergy to handle its £100,000 UK PR account.
Club Med reported group revenues last year of more than £1.5bn, a 5.1% increase on the previous year's revenue.
Philippe Bourguignon, the group's chief executive, resigned in December after failing to persuade shareholders to invest more in diversifying away from Club Med's villages.
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