Local hotels raise room prices during Commencement

As members of the Class of 2010 and their families begin planning for this year’s Commencement weekend, many local hotels are raising their prices more steeply than they have in past years to compensate for a loss of profits during the economic downturn.

The 215-room Nassau Inn on Palmer Square — the only hotel within walking distance of campus — has the largest increase in room rates during Commencement: A standard king room increases from $259 per night to roughly $667 per night with a minimum three-day stay and full payment required in advance.

“Our rates are driven by occupancy,” Nassau Inn General Manager Lori Rabon said. “Historically, we’ve always sold out Commencement weekend. This year, we sold out our rooms in around three hours” after they were made available on July 15.

Other hotels in the area also increase the price of rooms for Commencement. The Westin Princeton at Forrestal Village increases its room rates from $189 per night to $339 per night, the Hampton Inn Princeton located on Route 1 raises rates from $109 per night to $229 per night, and the Doubletree Hotel Princeton charges $229 per night, compared with regular rates of $169 per night.

Faced with the economic slump, hotels are looking to events such as Commencement to generate revenue and revive business, hotel owners said.

“[The economic downturn] has been an issue for all area hotels,” Hampton Inn Sales Manager Dawn Fasenmyer said.

Rabon echoed that sentiment. “We’d like to say there’s been no effect [from the economic contraction], but there definitely has,” she explained. “From a price standpoint, we’ve had to become more competitive and reduce [regular] rates to compete with area hotels. From a volume standpoint, we’ve seen a drop in the number of social and corporate travelers. We look to corporate events to drive business.”

Some local hotels, including the Princeton Marriott and the Hampton Inn Princeton, force families to pay full rates over Commencement weekend. Normally they offer significant discounts to students, families of students and University-affiliated officials.

“Although we usually offer discounts, we don’t over Commencement weekend because of the high demand for rooms,” Marriott sales and marketing director John Yake said.

“The hotel business is really based on supply and demand,” he explained. “If there’s a high demand in the market for rooms, then prices are going to be higher. It really depends on what’s going on in the area.”

For families looking for cheaper accommodation over Commencement weekend, however, the Commencement Committee runs an on-campus alternative: Operation Mattress, which allows families of graduating seniors to stay in dorms on campus during Commencement. Last year, the program cost $110 per person for three nights, and students were allowed to sign up a maximum of six family members.

“Operation Mattress is an underplayed aspect of Commencement,” Class of 2010 president Aditya Panda said. “It serves a lot of families with good housing so they can focus on Commencement.”

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This year, Operation Mattress is still “working with [the Office of the Dean of Undergraduate Students] to set up the details,” Operation Mattress director Carrie Carpenter ’10 said, adding that the University has not yet determined how much the dorm rooms will cost.

Though the program cannot guarantee air conditioning, private bathrooms or access for the elderly or disabled individuals, “student housing on campus is much cheaper than staying in a hotel,” Panda said.