Convention Bureau

You've probably heard the saying, "Champagne taste on  beer budget" and know that it's no easy feat. You want more, you pay more, right? Well, in today's tough economy, that's no longer the case, including at luxury hotels.

Though the entire hotel market is suffering due to the recession, no segment has been hit harder than luxury hotels. Smith Travel Research has reported that occupancy rates for luxury hotels worldwide fell 57 percent this year through July, a bigger drop than other accommodations. As such, upscale properties are cutting room rates; STR reports that average daily rates of luxury hotels around the globe have dropped as much as 16 percent.

"Most luxury hotels are facing occupancy shortfalls, they are lowering rates to entice consumers to come in," Jeff Higley, vice president at Smith Travel Research, recently told Bloomberg News. "There rarely has been a better time to stay at a luxury hotel than right now."

Take Las Vegas, where high supply and low demand have resulted in a budget traveler's paradise. In fact, back in May, Budget Travel writer Andrew Lincoln took a trip to Las Vegas to see just how low the luxury hotels though would go. On the phone, he got rates as low as $129 at the Wynn Las Vegas, and ultimately booked a room online for $90.

Last week, Orlando hotels were slashing rates just as much. The Orlando Sentinel reported that The Monumental Hotel was offering rooms for $10 one night mid-August. Meanwhile, Marriott's Orlando World Center Resort was running an Orlando hotel deal of 25 percent off for any guest booking a four-night stay.

New York hotels find themselves among those markets suffering the most, and thus are cutting rates quite a bit. For the week of August 9-15, 2009, Smith Travel Research reported that New York saw revenue per available room decreases of 30.2 percent, leading the six markets that reported RevPAR decreases of 25 percent or more.

"I know I could come across sounding like the convention bureau, but New York really is a good buy right now," John A. Fox, a senior vice president at the New York offices of PKF Consulting, recently told The New York Times.

As such, Manhattan hotel operators have responded by cutting room rates by nearly one-third over last year, averaging $200 a night in July, according to the NY Times. New York luxury hotels in NYC saw average daily rates of $289.