Customer lifetime value looks beyond a single purchase to the value of a customer relationship. Calculations vary. A simple revenue-based estimate combines average purchase value, purchase frequency and expected relationship length. A profit-based estimate must also account for the relevant costs. State which approach you use. Source: Stripe: Customer lifetime value

Choose a useful value for your agency

Label gross holiday sales separately from commission, fees or other income retained by the agency. Decide with your finance lead which figure belongs in the model. This avoids comparing acquisition costs with a booking total that includes money intended for suppliers.

Keep the assumptions visible

As a hypothetical income estimate, £200 per booking multiplied by two bookings a year for three years gives £1,200 before costs. Record the evidence behind the frequency and relationship length, then review it against repeat bookings. This keeps an estimate from being mistaken for guaranteed future income.

Written and updated by Travelgenix. Sources checked on 19 October 2026. Practical advice and examples are Travelgenix editorial guidance.