@MrsPramm - It just depends on what the goal of the trip is. If you are traveling somewhere to get away and relax from your ordinary life, you should go for luxury. If you are trying to expand your horizons, I wouldn't book a luxury travel package, because they usually prevent you from mingling with locals or getting off the beaten path.
I usually go with a cruise if I want luxury. But you really don't get more than a taste of the local cities if you do that.