Renting out points 2021supply vs demand

[Eric Smith]

"Supply and Demand have a big problem"

I think it will be hard to rent points for at least the next calendar year if not for two years.

 

[CarolynFH]

If you borrow points into a UY, don’t they have to stay in that UY and then expire at the end of that UY? So aren’t they just as vulnerable to becoming distressed?

Yes, they do remain in that UY - but in most circumstances you will have used them. They won't become distressed unless you cancel - or the resorts are closed, as they were earlier this year.

I think the folks who lost the most points due to COVID were those who had 2018 points banked into their 2019 UY and applied to reservations affected by COVID. Those 2018 points were extended somewhat but have to be used by November 30 of this year. If people had instead borrowed 2020 points into 2019 UY for those same reservations, DVC would have allowed them to "unborrow" those points and return them to 2020 UY, and depending on the UY banking window, some people were able to bank their 2019 points into 2020 as well.

 

[Sandisw]

Yes, they do remain in that UY - but in most circumstances you will have used them. They won't become distressed unless you cancel - or the resorts are closed, as they were earlier this year.

I think the folks who lost the most points due to COVID were those who had 2018 points banked into their 2019 UY and applied to reservations affected by COVID. Those 2018 points were extended somewhat but have to be used by November 30 of this year. If people had instead borrowed 2020 points into 2019 UY for those same reservations, DVC would have allowed them to "unborrow" those points and return them to 2020 UY, and depending on the UY banking window, some people were able to bank their 2019 points into 2020 as well.

True, but the return of borrowing points didn’t have to happen. So, whether banked or borrowed, both points will always be at risk if something happens to cancel the trip and no adjustments to the rules are made.

 

[TiggerBouncy]

I'm sorry, but I may be misunderstanding you. Are you concerned that not enough people will be using their points and there will be rooms available?

Dare to dream!

 

[artesian]

I'm sorry, but I may be misunderstanding you. Are you concerned that not enough people will be using their points and there will be rooms available?

Dare to dream!

Other way around to be honest. Too many points around and not enough rooms available. With the amount of people delaying or banking I would think the math tells me that's possible.

 

[TiggerBouncy]

Other way around to be honest. Too many points around and not enough rooms available. With the amount of people delaying or banking I would think the math tells me that's possible.

oh, right. I think everyone is a little concerned about that.

I suspect that may be part of the reason why DVC has gone hog wild in reclaiming points this year. I strongly suspect Disney is increasing it's share of the resort and will forfeit some of those points over the next 18-24 months to reduce the burden on inventory, then resell them after the crisis.

This is pure speculation on my part and I have no inside knowledge to back that up.

 

[Sandisw]

oh, right. I think everyone is a little concerned about that.

I suspect that may be part of the reason why DVC has gone hog wild in reclaiming points this year. I strongly suspect Disney is increasing it's share of the resort and will forfeit some of those points over the next 18-24 months to reduce the burden on inventory, then resell them after the crisis.

This is pure speculation on my part and I have no inside knowledge to back that up.

I don’t think that is the reason for ROFR, but we do seem to have confirmation that they used unsold points for owners who had banked 2018 points that either expired or would expire before October 1st.

I also think that the inventory for breakage will be less since more members will be booking. What will be interesting to see is if the amount of money gained from those rooms falls below the maximum given to offset dues.

 

[5th gate dreamers]

I’m unclear on how this protects points, but I’ve heard it mentioned elsewhere. If you borrow points into a UY, don’t they have to stay in that UY and then expire at the end of that UY? So aren’t they just as vulnerable to becoming distressed?

if you dont complete your trip, then yes to your scenario. what im saying is - say you borrowed 2020 points to do your trip in 2019, then borrowed 2021 to book 2020. disney was more than likely going to allow you to cancel and send those points back to 2021. i wouldnt say its foolproof, and would graciously thank them for doing it. even if they said no to putting your 2021 points back, at lease you would have until expiration 2021 to use those points and not have another round of points coming the next day that you have to figure out what to do with. its better than having all of your 2020 points stacked up with your 2021 points next year if you arent making a trip this year and having to make a decsion about clearancing your points via rental.