Luxury hotels in balancing act with price, image

A year ago, employees at Boiron, a medical manufacturing company, wined and dined at the Ritz-Carlton Golf & Spa Resort overlooking the picturesque bay in Rose Hall, Jamaica, for their annual retreat.

This year, employees are saying goodbye to luxury as company President Ludovic Rassat moved the event to a more sensible location: the Sheraton Suites Philadelphia Airport.

Many of his employees who live near the hotel are expected to sleep at home. "It's important to see we are making decisions for the good of the company," Rassat said. "At the end of the day, it's going to be good for them. Their jobs are still going to be there."

With a mentality like Rassat's pervading the business and leisure traveler psyche, luxury hotels are bleeding occupancy and revenue at a rate far worse than the travel slump experienced after September 11, travel experts say.

To overcome their financial woes, luxury hotels are dropping rates, giving customers incentives and finding ways to cut operating costs without compromising the integrity of their posh images.

Get the full story at: CNN