Trip cancellation policy as a DVC member...what is it?

[bangzoom6877]

If we become DVC members (looking to become members through resale) and book a 10-day trip for July 2010, let's say, and then we cannot go for some unforeseen reason, what is the cancellation policy? When we went to WDW last month (regular trip booked through our travel agent), we got the trip cancellation insurance through our TA. What is the cancellation policy when staying on your DVC points at a DVC resort? What is the deposit when you book? How does all of this work? So confused and trying to learn the basics before we buy!

 

[DVC Mike]

If you cancel a reservation for a DVC resort 31 or more days prior to check-in, all of the points used to make the reservation will be restored to your account.

If you cancel a reservation for a DVC resort between 30 and 1 days prior to check-in, all of the points used to make the reservation will be placed in the Holding Account. Holding account points may not be banked or borrowed, and will expire at the end of your current Use Year if they aren’t used, and the new reservation must be booked within 60 days of your new check-in date.

If you cancel a reservation for a DVC resort on the check-in date, all of the points used to make the reservation will be forfeited.

 

[DebbieB]

The insurance isn't great. If you cancel, you get reimbursed $5 per point. So if you have a 100 point reservation, you get $500. The points are not reinstated. The cost is 5.15% of the reimbursement. So $500 x 5.15% would be $25.75.

There is no deposit for a DVC reservation, you are using points. You just call and make the reservation, the points are deducted from your account.

 

[bangzoom6877]

The insurance isn't great. If you cancel, you get reimbursed $5 per point. So if you have a 100 point reservation, you get $500. The points are not reinstated. The cost is 5.15% of the reimbursement. So $500 x 5.15% would be $25.75.

There is no deposit for a DVC reservation, you are using points. You just call and make the reservation, the points are deducted from your account.

So then if you make a reservation for a stay that would be 270 points, all 270 points would be deducted from your account right then and there, correct?

 

[crisi]

If you cancel a reservation for a DVC resort 31 or more days prior to check-in, all of the points used to make the reservation will be restored to your account.

Depending on your use year and your flexibility, having the points returned to your account may not be terribly useful.

Let's say your use year is April and you have a trip planned for February. You cancel your trip in December. Its too late to bank those points and any borrowed points can't be returned, so you need to use those points by March 31st. Its December already - you are going to have to find a time when you can travel between December and April 1 - AND there is going to need to be availability for the dates you pick.

For some people, this isn't a big deal. They have a lot of flexibility in their travel dates and flexibility in where they stay as well. For other people, this creates disappointment, they may be very limited in when they can travel, they may have high airfare if they go short notice, and for the days they can go on vacation, availability might be limited to rooms and resorts they aren't interested in staying in.

 

[tjkraz]

So then if you make a reservation for a stay that would be 270 points, all 270 points would be deducted from your account right then and there, correct?

For the most part, yes. The points are still yours, but they are committed to the reservation at the time of booking. You can't use the points for any other purpose as long as that reservation remains in force.

As DebbieB said, the insurance isn't all that great. And it's important to note that you only suffer a loss if you have to cancel less than 24 hours before arrival or midway thru your trip.

If you cancel 3 days out the Holding Account rules apply but technically you have not lost any points, so you would not be able to file a claim. But depending upon how far away the end of your Use Year is and your own travel schedule, you may still find yourself unable to use the points. Those issues would fall outside the purview of the travel insurance.

 

[DebbieB]

If you cancel 3 days out the Holding Account rules apply but technically you have not lost any points, so you would not be able to file a claim. But depending upon how far away the end of your Use Year is and your own travel schedule, you may still find yourself unable to use the points. Those issues would fall outside the purview of the travel insurance.

Do you know for sure that the insurance does not pickup during the holding account period? If you are towards the end of your use year, those points could be useless. The pamplet refers to the "penalty period", which isn't defined. If that's the case, then you are better off waiting to cancel until the arrival date if you have the insurance.