The account moves to Fallon from Ogilvy & Mather London, which did not repitch for the business. The Publicis Groupe shop fought off competition from Anomaly and Joint.
Fallon will handle advertising for Expedia across Europe in the UK, Ireland, Denmark, the Netherlands, Belgium, Norway, Sweden, Denmark, Finland, Spain, France and Italy.
Andrew Cocker, the senior director of marketing at Expedia, worked with Oystercatchers on the process after a review was called earlier this year.
Expedia appointed Ogilvy & Mather to its £40m pan-European ad account in 2010. Three years later it won eight gold Outdoor Lions for Expedia’s campaign featuring airline baggage tags spelling out holiday-related messages, such as "SUN SEA AND SEX".
PHD has handled Expedia’s media since 2003. An Expedia spokesman told Campaign the brand has no current plans to review its media planning and buying requirements.
Of Fallon’s appointment, Cocker said: "The strategic rigour and creative output from all of the agencies on the pitch was exceptionally high, but Fallon gave us that extra bit of magic.
"They demonstrated an infectious curiosity to really get under the skin of the business, combining short term agility with the longer term brand planning.
"They went beyond the traditional advertising response to interrogate the end-to-end customer experience in our drive to align the whole business around a consistent purpose."