The agency won the business after a final head-to-head pitch against Archibald Ingall Stretton. Kitcatt Nohr Digitas and TMW were knocked out earlier in a process conducted by Creativebrief.
Lida's hiring consolidates Virgin Holidays' creative arrangements into the M&C Saatchi Group after the recent appointment of its sister ad agency to the above-the-line account.
A review of the Virgin Holidays business began in April. M&C Saatchi was appointed in August to handle the Virgin Holidays advertising account, bringing an end to its "Rockstar Service" proposition launched by MCBD in 2010.
MCBD merged with Dare shortly afterwards and Virgin Holidays moved its entire creative business into Dare's sister agency Elvis.
Virgin Holidays' media buying, currently handled by Manning Gottlieb OMD, is unaffected by the move.Follow @SaraKimberley