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The events of 11 September 2001 have had a significant impact upon the global economy. In particular, companies dependent upon tourists experienced a decline in demand due to fear of further terrorist incidents. This case illustrates how that decline impacted upon a luxury hotel group and in particular how necessary reductions in the labour budget led to a decline in employee motivation and service quality. The case presents students with a scenario that allows them to apply the general introductory and intermediate principles and theories underlining work place motivation. More specifically, it allows them to judge the effectiveness of a cost cutting exercise, to examine how employee motivation impacts upon services quality and to consider measures that might be taken to improve motivation at a time of commercial crisis.