Lalia Rach, a dean at the NYU school of hospitality and tourism and one of the most sought after speakers in the travel industry, has been more positive about a return to luxury than many other analysts. In a recent talk with LT360 she told us that while Americans have a puritan ethic that is now in full force, there will be a return to luxury - if not indulgence -- once a recovery gets under way.

Here is what Rach had to say about this much-discussed "return":

•  We are going through a 21^st century version of the Puritan period - when consumption is not good and excess is definitely not good. Some of that will not go away but we will "re-temper" ourselves.
• Marketers cannot go from promoting luxury to promoting egalitarianism or utilitarianism - that will destroy your brand.
• People who trust your brand might be lying low but you don't want to destroy that trust by hiding who you are.  Promotions like fourth night free are smart marketing tools because consumers know that will not be available forever.
• We will not find ourselves returning completely to old ways - but will reset ourselves. We will realize that luxury is not a bad thing. When the recovery starts, luxury won't be an evil word.

• We will look at luxury in a dramatically different way. There will be a much more reasoned, rationale approach to individual consumption and to meetings and conferences.  As of the middle of the year, the top selling cars in America were pre-owned luxury cars. That's a shift. It's a way to enjoy luxury without being as conspicuous. We still want to enjoy ourselves. 
• There is soul searching going on in every aspect of luxury - you don't walk into a Saks and expect to pay full price - so it will take time for luxury to regain the trout of the consumer.