The agency saw off competition from Bartle Bogle Hegarty, Lowe & Partners and Wieden & Kennedy London to win the account. The incumbent agency, St Luke's, did not repitch.
Travelocity, an online travel company, spends around £1 million on advertising but is expected to spend £6 million with MCBD.
MCBD will now be required to produce a strategy that will clearly differentiate Travelocity from its key competitors, such as Opodo and Expedia. The resulting work will run across various media from January 2004.
Helen Calcraft, the managing partner of MCBD, said: "This is a significant win for the agency. It's not every day that a client comes to you with a brief to challenge conventions and to be a part of building a fresh and engaging brand. Travel is central to young people's lives and we want Travelocity to become their brand of choice."
Charlotte Harper, who joined Travelocity as the marketing director 18 months ago, conducted the review. Harper said: "We believe 2004 is going to be a big year for online travel and, in MCBD, we have found an agency that perfectly fits our brand and understands our objectives."
The review did not affect the company's media planning and buying accounts, which are held by Klondike and Universal McCann.