Is there a disadvantage to paying off room only reservation upfront?

[nkereina]

In the OP's case, I agree there's no advantage or disadvantage to paying it now since its gift cards. But if gift cards were not involved, the disadvantage would be that you're allowing Disney to hold your cash rather than yourself. There's no benefit in that. The interest factor aside, with the money in your account, it's there in case of emergency and if you have to cancel, you don't have to wait weeks for a refund. I also like to have as much as I can paid for in advance of a trip, but you can simply phone in the balance payment a week before your trip rather than months out, which is much more sensical.

 

[smmco]

As another posted pointed out, there are plenty of ways to earn more than 2% on that money without doing anything fancy.

I don’t understand how giving Disney the money early gives you peace of mind while keeping it your own savings account doesn’t. Do you think Disney will give your reservation to someone else if you don’t pay early? Or perhaps you’re a compulsive gambler or shopper. If so, ok, I could see the benefit to tying your money up where you can’t get to it.

Lastly, you completely ignore the potential of an unforeseen expenditure. If you had to carry a balance on your credit card due to an unfortunate life event, you’re now paying 18ish percent on your vacation package money. That adds up real fast.

Most credit cards pay 2-3% cash back. Some people like to use the points for airline tickets and such things and paying it off early may give them the points they need. I usually pay it off before last statement ends on my Disney visa. I use the points at the Lego store. My next 5 day trip my room will be free. I'm using my Capital one points to pay for the trip. Honestly I make more money using credit cards for everything and paying them off every month then the measly interest I make in my checking or savings account.
You are also making the assumption that people don't have emergency funds. How you could you possibly know what someones financial profile looks like.