Accounting for Product Impact in the Airlines Industry

18 Pages Posted: 22 Nov 2020

See all articles by George Serafeim

George Serafeim

Harvard University - Harvard Business School

Katie Trinh

Harvard University - Business School (HBS)

Date Written: November 16, 2020

Abstract

We apply the product impact measurement framework of the Impact-Weighted Accounts Initiative (IWAI) in two competitor companies within the airlines industry. We design a monetization methodology that allows us to calculate monetary impact estimates of fare affordability, timeliness and gate control, among other factors. Our results indicate substantial differences in the impact that competitors have through their products. These differences demonstrate how impact reflects corporate strategy and informs decision-making on industry-specific areas, including airline route structure choices.

Suggested Citation

Serafeim, George and Trinh, Katie, Accounting for Product Impact in the Airlines Industry (November 16, 2020). Harvard Business School Accounting & Management Unit Working Paper No. 21-066, Available at SSRN: https://ssrn.com/abstract=3733032 or http://dx.doi.org/10.2139/ssrn.3733032

George Serafeim (Contact Author)

Harvard University - Harvard Business School ( email )

381 Morgan Hall
Boston, MA 02163
United States

HOME PAGE: http://goo.gl/q4cJ5A

Katie Trinh

Harvard University - Business School (HBS) ( email )

2 Arrow Street
Cambridge, MA 02138
United States

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