Luxury travel industry regroups amid downturn

There's no denying that times are tough for the travel industry right now. Everywhere you turn, a hotel or resort is offering a reduced price, a free night or some other incentive. Airlines are locked in price wars and issuing rock- bottom rates even as they charge for everything but the seat cushion.

In the luxury market, things are no better, and in some ways even worse. Mid-tier and luxury travel volumes have dropped off dramatically. Average Americans (even average well-off Americans) feel less inclined to splurge, and there's been a massive drop-off in corporate travel. With Wall Street firms feeling the heat, and companies everywhere looking to save, the sales retreats, meetings and client wining-and-dining that formed the backbone of the industry have virtually disappeared.