A double from Danny Hylton – the forward’s 21st and 22nd goals of the campaign – set the Hatters on their way before Glen Rea and Pelly Ruddock put extra gloss on the scoreline in the second half.
Hylton has now netted four times in as many games against the Glovers and Way concedes his side couldn’t get to grips with his and Luton’s quality.
“We were up against a very good team – you could see the difference in class,” he told YTFC’s official YouTube channel.
“Hylton ran the show from start to finish and got a standing ovation. He was a real threat and unfortunately we couldn’t deal with that.
“Knowing we were up against a real threat anyway it was a case of how we’d deal with that and you could see after (the penalty) there were 10 or 15 minutes where we couldn’t get the ball and it became difficult for us.
“It’s always disappointing when you lose but we were up against a good team who had too much class.”
The loss leaves Town 17th in the table, eight points above the drop zone following Leyton Orient’s big win over fellow strugglers Newport County.
Way doesn’t believe his squad are in a relegation battle but is keen for them to remain in control their own fate.
“We can only focus on ourselves,” he said.
“I have to make sure we keep strong and I’ll make sure the group are ready for the next game.
“I have to lead the group into the next game against Morecambe (Saturday, March 11th (3pm)) and if we’re going to be resilient, then we have to do it from now.”