Cruise Swap via 3rd party brokers

[VGCgroupie]

Talk to me about cruise swap. My resale contract closing seems like it’s not going to workout for our August trip so I was considering a cruise in August instead.

Resale cannot utilize Disneys cruise swap correct?

With 3rd party brokers such as one of the board sponsors how does it work?

Do they rent your points and then book your cruise with that revenue?

If yes, since you are swapping does that money from renting still get reported as income on taxes?

Does the value of points rented vary based on home resort?

Have you done this? If so how did it work out for you?

I will likely reach out to the board sponsor but wanted to get info and opinions here first.

 

[Sandisw]

I can't answer too many questions about using the brokers to do the cruise swap, but you are correct in that any resale points bought since April 2012 can not be used to exchange into a Disney Cruise via DVC.

I have not done the cruise swap but from what I remember when I checked, you simply rent your points out and instead of getting paid, they take what they would pay you (its the same as if you wanted cash) and book a cruise for you instead.

 

[VGCgroupie]

I can't answer too many questions about using the brokers to do the cruise swap, but you are correct in that any resale points bought since April 2012 can not be used to exchange into a Disney Cruise via DVC.

I have not down the cruise swap but from what I remember when I checked, you simply rent your points out and instead of getting paid, they take what they would pay you (its the same as if you wanted cash) and book a cruise for you instead.

Thanks!

 

[DaveNan]

Talk to me about cruise swap. My resale contract closing seems like it’s not going to workout for our August trip so I was considering a cruise in August instead.

Resale cannot utilize Disneys cruise swap correct? correct

With 3rd party brokers such as one of the board sponsors how does it work? yes, you can use resale

Do they rent your points and then book your cruise with that revenue? yes

If yes, since you are swapping does that money from renting still get reported as income on taxes? correct - they state, since it is a swap/ payment in kind, they do not report on a 1099 and you do not get paid via Paypal, so you have no tax obligation

Does the value of points rented vary based on home resort? yes, same rate as renting points. home resort and before or after 7 months matters

Have you done this? If so how did it work out for you? no don't know

I will likely reach out to the board sponsor but wanted to get info and opinions here first.

I have not done it, but the board sponsors info states.. see above

 

[VGCgroupie]

I have not done it, but the board sponsors info states.. see above

Thanks! I was on their site but found none of this info. Maybe I was in the wrong place

 

[DaveNan]

Thanks! I was on their site but found none of this info. Maybe I was in the wrong place

I might have seen it on one of the DVC shows back several months ago.

 

[VGCgroupie]

Found some you tube videos and also touched base with the board sponsor. Thought I’d post my findings here in case anyone else is looking for this info.

You don’t get a 1099 for the point rentals if you are swapping.

My situation of a cruise 2 months away would not work. Here is the info I received when I inquired on the process.

“August is just less than 2 months from today, Disney will require full payment at the time of booking. For sailings 5 Nights or less, final payment is due to Disney 90 days prior to sailing. For sailings 6 or more nights, final payment is due to Disney 120 days prior to sailing. This does not allow you any time to actually go through the point rental process.

For the Cruise Swap we typically suggest booking sailings that depart at least 5-6 months from now, so there is enough time to rent your DVC points prior to final payment being due to Disney. To rent your points, you claim reservations that meet the points you are looking to rent, and secure reservations on behalf of our guests. We hold the funds you earn from renting your points and apply them to the total cost of the cruise.”

 

[we"reofftoneverland]

Found some you tube videos and also touched base with the board sponsor. Thought I’d post my findings here in case anyone else is looking for this info.

You don’t get a 1099 for the point rentals if you are swapping.

My situation of a cruise 2 months away would not work. Here is the info I received when I inquired on the process.

“August is just less than 2 months from today, Disney will require full payment at the time of booking. For sailings 5 Nights or less, final payment is due to Disney 90 days prior to sailing. For sailings 6 or more nights, final payment is due to Disney 120 days prior to sailing. This does not allow you any time to actually go through the point rental process.

For the Cruise Swap we typically suggest booking sailings that depart at least 5-6 months from now, so there is enough time to rent your DVC points prior to final payment being due to Disney. To rent your points, you claim reservations that meet the points you are looking to rent, and secure reservations on behalf of our guests. We hold the funds you earn from renting your points and apply them to the total cost of the cruise.”

Sorry to be dense, so there are no tax implications at all, right?

 

[VGCgroupie]

Sorry to be dense, so there are no tax implications at all, right?

The way they word it is that if you aren’t receiving cash there is no tax implications. They book the the cruise and use the rental funds to pay for the cruise. If the rental proceeds exceed the amount of the price of the cruise then you would get a 1099. But I would for sure clarify with them to be sure I understood correctly.

 

[we"reofftoneverland]

The way they word it is that if you aren’t receiving cash there is no tax implications. They book the the cruise and use the rental funds to pay for the cruise. If the rental proceeds exceed the amount of the price of the cruise then you would get a 1099. But I would for sure clarify with them to be sure I understood correctly.

Do you happen to know then if they book the cruise for you if they are considered your travel agent? Or if the cruise is just booked as if you booked it? Not a big deal either way just curious.

 

[PoppyJ]

I booked my cruise through https://dvcrequest.com/ and used the point swap.

I booked an August 2024 cruise in July 2023. I was able to use my 2023, 2024 and 2025 to make the DVC bookings to pay for the cruise. Some of the reservations I made do not occur until after the cruise.

Do you happen to know then if they book the cruise for you if they are considered your travel agent? Or if the cruise is just booked as if you booked it? Not a big deal either way just curious.

They are considered a travel agent who booked the cruise for me. I received a $240 onboard credit for booking with them.

 

[we"reofftoneverland]

I booked my cruise through https://dvcrequest.com/ and used the point swap.

I booked an August 2024 cruise in July 2023. I was able to use my 2023, 2024 and 2025 to make the DVC bookings to pay for the cruise. Some of the reservations I made do not occur until after the cruise.



They are considered a travel agent who booked the cruise for me. I received a $240 onboard credit for booking with them.

Wow this sounds like a great way to go.
Thanks for the information @PoppyJ and @veginaz

 

[jodifla]

I used points to book DCL direct. The cruise was only a couple months out so I didn't want to rent them and we didn'twant to pay cash. We got our points to use them.

 

[VGCgroupie]

I used points to book DCL direct. The cruise was only a couple months out so I didn't want to rent them and we didn'twant to pay cash. We got our points to use them.

Unfortunately I only have resale points so direct isn't an option.

 

[LAX]

I booked my cruise through https://dvcrequest.com/ and used the point swap.

I booked an August 2024 cruise in July 2023. I was able to use my 2023, 2024 and 2025 to make the DVC bookings to pay for the cruise. Some of the reservations I made do not occur until after the cruise.



They are considered a travel agent who booked the cruise for me. I received a $240 onboard credit for booking with them.

Other than the benefit of no 1099, why not just rent your points and book the cruise on your own with proceeds?

LAX

 

[VGCgroupie]

Other than the benefit of no 1099, why not just rent your points and book the cruise on your own with proceeds?

LAX

Mainly the no 1099 and if you rent without a broker there is still the need to report the income.

 

[LAX]

Mainly the no 1099 and if you rent without a broker there is still the need to report the income.

That's what I figured. Can you cancel the cruise? If so, do they only issue a credit for future purchase?

LAX

 

[dioxide45]

Does the date of the rental need to be before the date of the cruise? I understand some of these point brokers have more flexible cancellation policies. What happens if the renter cancels before or even after final payment?

This is a pretty good deal for the brokers/travel agency. They get the commission from the point rental, they can earn interest revenue for money sitting in escrow until final payment is due and then they also earn commission for selling the cruise.

 

[VGCgroupie]

That's what I figured. Can you cancel the cruise? If so, do they only issue a credit for future purchase?

LAX

Does the date of the rental need to be before the date of the cruise? I understand some of these point brokers have more flexible cancellation policies. What happens if the renter cancels before or even after final payment?

Different brokers have slightly different terms it seems. Since the cruise I was trying to take was this August it wouldn't work out for me I didnt get any further details. I will utilize the service in the future though and always update here what I find out.

 

[PoppyJ]

Other than the benefit of no 1099, why not just rent your points and book the cruise on your own with proceeds?

LAX

I've only rented my points out once before. That was also with David's. I like the ease it. They send me an email, I make the reservation and I'm done. Also, I got the $240 onboard credit so that was a little bonus.

Can you cancel the cruise? If so, do they only issue a credit for future purchase?

The cancelation policy/deadline is the same time period as if you made a cash booking on your own. If you cancel within the deadline, you will recieve the rental proceeds in cash. David's response to my question - "Payment to you then for rented points would be done under our normal 70%-30% structure based on when the cruise was cancelled in conjunction with the guest reservations made with the points." The 70% is paid when the reservation is made, 30% after the stay is completed.

Does the date of the rental need to be before the date of the cruise? I understand some of these point brokers have more flexible cancellation policies. What happens if the renter cancels before or even after final payment?

No, my cruise is in September. Some of the reservations I made are for November.

I believe renters have to make payment in full to David's when you make the reservation. Then they are subject to David's cancelation policy but I don't think that has an effect on payment to you. Another benefit of not renting points out on your own.