The agency won the account following a competitive pitch against incumbent Elvis. The process, which began in April, was conducted by Creativebrief.
M&C Saatchi will also work across the company’s specialist businesses brands including Virgin Holidays+Hip Hotels and Travel City Direct.
M&C Saatchi will launch a campaign for the holiday company in March next year with a new brand strategy and strapline, ending Virgin Holidays' 'Rockstar Service' proposition, which was launched by MCBD in 2010.
MCBD was appointed the Virgin Holidays ad account in 2008 prior to its merger with Dare in 2010. Following the merger, the Virgin Holidays advertising account was handled by sister agency, Elvis.
Elvis is also the incumbent on Virgin Holidays’ direct marketing account, which is also under review.
The company’s media buying, currently handled by MGOMD, is unaffected by the appointment.
Andrew Shelton, marketing director at Virgin Holidays, said: "I can confirm that we have appointed M&C Saatchi as the new above the line agency for Virgin Holidays.
"Throughout the comprehensive pitch process, their unique creative outlook, experience and expertise showed them to be the right agency for us at this time and we’re very confident in their ability to take the Virgin Holidays group of brands forward.
"We’ve enjoyed a long and productive relationship with Elvis/Dare over the last four years, and want to thank them for their efforts and wish the team there well for the future."
Lisa Thomas chief executive at M&C Saatchi, said: "Virgin Holidays is a brand with such ambition and appetite for brave, integrated creativity.
"It was the first pitch led by Elspeth Lynn, our new executive creative director who has already made a huge impact on the agency in just over a month."
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