Rocky Agrawal has a great post about Groupon Getaways that ties nicely in with [what I wrote yesterday](http://brooksreview.net/2011/09/death-spiral/). According to Agrawal:
>The reason that regular Groupons are so generous is that merchants are sold on the line that they can do the first deal at a loss and you will become a repeat customer. Hotels don’t buy that. To a hotel revenue manager, you’re a head in a bed. Not only must your head be profitable for a given night, it must be maximally profitable. If there’s a big convention in town and rooms are selling for $500 a night, you won’t be able to use that Groupon voucher that you bought for $100 a night.
