How can DVC give points back?

[OneMoreTry]

I'm glad DVC is refunding points for the storms. I think it is the right thing to do. BUT I'm wondering how it works.

If DVC returns points to hundreds of members and the rooms sit empty, how does DVC accomodate all those points in the future? It seems like there will be more points than availability and somewhere, someone won't be able to book. Like musical chairs where there's one chair too few. I'm sure they leave a cushion, but when THAT many points are refunded wouldn't there be a problem?

Could that lead to a hold on banking and borrowning? Make it more difficult to book? Be the end of life as we know it?

 

[Granny]

I guess they'll have to dip into all those open accommodations due to some members letting points expire each year because they don't understand DVC!

Seriously, I think your question is a good one. (The first one that is, not the last one! )

My guess is that it's not any worse than any given year when members decide to borrow more than usual, or bank more than usual. There must be some flexibility that allows for that, and I imagine it comes into play in situations like this.

 

[spiceycat]

DVC also kepts 5% of all the DVC resorts - that they can rent if they aren't redoing any building/floors.

plus they have brought back alot of DVC contracts - if worst they can use them for short term - especially the ones with banked points.

also I think it is consider a cost of during business and I am pretty sure can go off the taxes?????

 

[eileenfk]

Originally posted by spiceycat

...
plus they have brought back alot of DVC contracts - if worst they can use them for short term - especially the ones with banked points.

Maybe that is the reason for all the recent ROFR stuff that has been happening
It is more logical then my theory about there being an un-detected bug in a computer program being used to help with the decision.

 

[johde]

Other than Vero Beach which is being evacuated all of the other resorts are being filled up with Cash customers evacuating from the coast. Disney is using their 5% plus exchange points for those. On top of that the only thing they are doing different is placing them in their accounts instead of holding status.

 

[OneMoreTry]

Originally posted by spiceycat

also I think it is consider a cost of during business and I am pretty sure can go off the taxes?????

I'm not talking about money lost here. If that were the problem, it would be simple. They would just lose the money. Maybe even recoup on the insurance.

But when they give away points (even for a good reason) they are giving away time in a condo. Which is a limited asset. There are only so many units and so many weeks available. If there are too many points available relative to units available then somebody won't have a place to stay.

I just had another thought to add to Granny's. DVC could rent some of Disney CRO's rental units and then offer them up for points.

I guess they'll work it out, but I wouldn't be surprised if we saw a hold on point borrowing points if too many nights are shut down.

 

[PamOKW]

I'm not sure who the DVC wizard is who keeps things in balance. They do have the option of suspending banking and/or borrowing if things get too out of whack. However, there have been other circumstances where they have given back the points (including right after 9/11/01).

 

[DebbieB]

If there was a time to suspend borrowing, it would have been when many OKW members took trips with borrowed points at the end of 1999 so they could get free passes for the last time. But they didn't, so it would take alot to throw the system off enough to suspend borrowing and banking.

 

[childsplay]

Although I have nothing more than anecdotal evidence to base the following ascertation on........I believe that there are a tremendous number of points which are simply allowed to expire each year by members who either don't understand the system or don't care. If I was forced to produce a number,(which is not happening right now, but I'm going to throw one out anyway) I would feel comfortable conservatively placing it north of 750,000 a year.
That translates into a fair number of unused units.

 

[Mickmse2002]

Originally posted by childsplay
Although I have nothing more than anecdotal evidence to base the following ascertation on........I believe that there are a tremendous number of points which are simply allowed to expire each year by members who either don't understand the system or don't care. If I was forced to produce a number,(which is not happening right now, but I'm going to throw one out anyway) I would feel comfortable conservatively placing it north of 750,000 a year.
That translates into a fair number of unused units.

I certainly have nothing to dispute this number but just curious as to how you came up with it. Speaking as someone who is consistently in the "borrowed from next year category" it seems like you would have to have a lot of uneducated members?

 

[Granny]

Originally posted by childsplay
Although I have nothing more than anecdotal evidence to base the following ascertation on........I believe that there are a tremendous number of points which are simply allowed to expire each year by members who either don't understand the system or don't care.

That's the point I was making in a somewhat humorous vein in my response. I do think there are some number of members out there who don't fully understand DVC, or who don't track it carefully.

Originally posted by DebbieB
If there was a time to suspend borrowing, it would have been when many OKW members took trips with borrowed points at the end of 1999 so they could get free passes for the last time. But they didn't, so it would take alot to throw the system off enough to suspend borrowing and banking.

That's an excellent point. You certainly would have thought that could have thrown the whole thing into a mess, wouldn't you? And if that didn't, a couple of days of cancellations here and there probably wouldn't either.

 

[WDWguru]

I don't know if this helps, but when our cruise was chartered out from under us a few months back, our rebooking moved our stay to include a weekend. Since we had to spend more points and borrow when we didn't plan on it, DVC was kind enough to refund half of the borrowed points back to our account. They indicated these were "developer points" -- much like what they give out when doing incentive stays for new purchases. Perhaps they are using these developer points for refunds now?

 

[lenshanem]

I'll let you smarter folks figure this one out , but I do know I'll be quite sad if they suspend borrowing since I planned on doing so for next summer for two trips so I can take the in-laws to VB (If it is still there! ) AND to take my Mom to HH for a few nights.

 

[Granny]

Originally posted by lenshanem
I'll let you smarter folks figure this one out , but I do know I'll be quite sad if they suspend borrowing since I planned on doing so for next summer for two trips so I can take the in-laws to VB (If it is still there! ) AND to take my Mom to HH for a few nights.

Shan...I wouldn't worry for two seconds about borrowing or VB. Both will be fine next year!

 

[jmminarik]

With what, 85000 member families, if 10,000 of those let 25 points expire thats 250k right there. Add in DVD's points, and you get lots more. I'd suspect most people wind up letting a small amount of points expire each year. 60K people letting 2 point expire is alot of points.

Of course, I'm babbling without and numbers to back it up.

We fanatics on this board are really just a tiny portion of the population...I know two DVC families and I'd be surprised if they looked at this forum even though I sent them the link.

-Joe

 

[crisi]

I agree its probably common to let points expire - look at how often DVC reminds us of the banking deadline - they don't do that because everyone remembers to bank.

 

[Pa@okw95]

Many people let their points expire plus a lot use their points outside of DVC. I would not concern myself with musical-chairs.

 

[OneMoreTry]

Originally posted by Pa@okw95
...plus a lot use their points outside of DVC. ...

When members trade outside DVC do you think DVC pays for their vacation and then saves the points to sell later?

I think DVC gives the points to someone trading INTO DVC (in exchange). Therefore, those points are not available.