The holiday provider has previously used Rainey Kelly Campbell Roalfe/Y&R on a project basis to create TV advertising and has also used Tugboat for press advertising.
Agency sources suggested that Virgin Holidays wants a more integrated approach, including direct marketing, from the appointed agency. Four agencies are said to be pitching for the business. The first stage of the process is expected to take place next week.
RKCR/Y&R was appointed in April to create a TV ad for Virgin Holidays.
It developed a fast turnaround campaign featuring a garden gnome and the line: "Dream holidays, reality prices" to support the Virgin Holidays range.
Virgin Holidays, which offers breaks around the world but specialises in North America and the Caribbean, uses Manning Gottlieb OMD for media planning and buying. This account is not thought to be up for review.
It hired Manning Gottlieb in early 2001 after parting company with D'Arcy, with which it had a full-service agreement that included using MediaVest.
Kathryn Street, the director of sales and marketing at Virgin Holidays, was unavailable for comment.
Virgin Holidays achieved a sales uplift of 10 per cent on its summer holiday range following the TV advertising this summer. Unlike other holiday companies it decided to increase its above-the-line spend after 11 September.