What's the rationale of the "Rule of Four?"

[DVCowner2009]

As I understand it, you cannot book and take a trip at a non-DVC property within four months of the expiration of your UY. For example, if we have a March UY, then we can't book and take such a trip within the November-February "blackout period."

First, do I have that right?

Second, what's the rationale for this? The only reason I can think of is to discourage people from using up their "leftover" points for 1-2 night stays outside of DVC, thus increasing the amount of expired and unused points.

 

[chalee94]

As I understand it, you cannot book and take a trip at a non-DVC property within four months of the expiration of your UY. For example, if we have a March UY, then we can't book and take such a trip within the November-February "blackout period."

First, do I have that right?

i think so, yes.

Second, what's the rationale for this?

from what i understand: DVC is set up to use your pts at DVC resorts. if you decide to trade out and stay at the GF or go on a cruise (for example), then DVC must 1) rent the pts you trade in for cash and 2) use that cash to pay the disney hotel or cruise division. in order to give them a better chance to set up a cash reservation, they need extra time.

 

[5forDiz]

If your Use Year is March you CAN travel outside of DVC resorts during the

months of November, December, January and February

IF you make reservation prior to October 31st.

Any reservation for outside of DVC that you make during

the months of November,December, January or February

would have to be for a travel date of March 1st or later.

 

[chalee94]

The only reason I can think of is to discourage people from using up their "leftover" points for 1-2 night stays outside of DVC, thus increasing the amount of expired and unused points.

i would add that timeshares in general are not really intended for last minute trips. DVC - like other timeshares - works much better if you plan ahead.

if you plan ahead, you can book outside of DVC 5-6 months in advace...or you can bank the pts if you won't need them. if not, you still have the option of using the pts at DVC resorts - either for yourself or as a rental. but i don't blame DVC for not wanting to get stuck holding the bag...

 

[pvalues]

but i don't blame DVC for not wanting to get stuck holding the bag...

Then they shouldn't advertise it as being a benefit.

No offense here to anything Disney, but come on...they roll in the dough. If they didn't, they wouldn't keep the parks open, or continue to make movies, or anything else they do.

Dave

 

[chalee94]

Then they shouldn't advertise it as being a benefit.

like most other businesses, they advertise the benefits and the restrictions are typically in the fine print of the contract.

if someone can't be bothered to read the contract and just expects a pile of pixie dust to solve whatever problems might arise...then DVC is not a good idea for them.

 

[Deb & Bill]

The problem with using these so late is that DVC doesn't have time to sell these points to make the cash to pay for the trip before they expire or there isn't enough time to get a reservation booked off of RCI at the last minute. It might happen, but they might get stuck.

And, ultimately, it's our money that gets spent, not Disney's. We own the timeshare. They just manage it for us. The rule of four makes it easier to manage.

 

[dianeschlicht]

The problem with using these so late is that DVC doesn't have time to sell these points to make the cash to pay for the trip before they expire or there isn't enough time to get a reservation booked off of RCI at the last minute. It might happen, but they might get stuck.

And, ultimately, it's our money that gets spent, not Disney's. We own the timeshare. They just manage it for us. The rule of four makes it easier to manage.

That was an excellent and easy to understand explanation!

 

[YourEveryDayAdam]

So here is the reasoning behind the rule of 4:

First the rule states that you can't book and travel for reservations outside of the DVC system in the last 4 months of your use year.

You CAN travel during the last 4 months of your use year so long as you book it before the last 4 months of your use year (the banking deadline).

You CAN book travel during the last 4 months of your use year so long as that travel is scheduled for next use year.

The reason is simple: Whenever we trade out, the points that represent a reservation that you could have made are used to create a reservation. Either for cash bookings (if you traded to DCL or one of the other non-DVC resorts), or they create a reservation to be traded with RCI or II (or whatever the time share trading company at the time happens to be).

The points that you use to trade out have the same restrictions that you do when they are used for other purposes. So, that means that if they are put in to the cash reservation pool, then Disney has to book a cash reservation that falls within the use period of your points. If they are put in to the time share trading pool, then someone would have to book and stay at that reservation before your points would have expired.

So, lets for a minute, imagine what would happen if the rule of 4 didn't exist. Let's say that it's October 1st and you have a November Use Year. So, your points will expire on October 31st. You are also WAY past your banking deadline and all DVC resorts are booked solid. You then figure out that there is room at the Poly to use your points. So you use your 160 points at the Poly for a stay. Those points, that expire in 30 days, then go to the cash stay pool of points in order to "pay" for your POLY reservation. Disney would then have to book a last minute reservation at a DVC resort for a cash guest to complete their stay by the end of October. This would be a VERY difficult thing to accomplish.

Same thing for trading out to another time share company. You find out that there is availability in Hawaii and book it. The time share trading company then gets a reservation week that has to be booked and completed before the end of October. Not gonna happen, especially since there isn't any availability.

If you book before your banking deadline, then the points that you use to trade out can be banked in to next use year and they still have 4 months to book and complete a reservation while those points are still good. This just makes it realisticly possible that they can find a useful way to get "paid" for those points that you used to trade out.

 

[Reddog1134]

So, lets for a minute, imagine what would happen if the rule of 4 didn't exist. Let's say that it's October 1st and you have a November Use Year. So, your points will expire on October 31st. You are also WAY past your banking deadline and all DVC resorts are booked solid. You then figure out that there is room at the Poly to use your points. So you use your 160 points at the Poly for a stay. Those points, that expire in 30 days, then go to the cash stay pool of points in order to "pay" for your POLY reservation. Disney would then have to book a last minute reservation at a DVC resort for a cash guest to complete their stay by the end of October. This would be a VERY difficult thing to accomplish.

I understand your explanation but I have to ask. In this scenario, if the DVC resorts are booked solid, how would Disney book a cash guest?

 

[chalee94]

I understand your explanation but I have to ask. In this scenario, if the DVC resorts are booked solid, how would Disney book a cash guest?

DVC would most likely not be able to book a cash guest in less than a month since the DVC resorts are booked solid. that's the point.

you stay at the poly. the poly would ask DVC for cash to pay for your stay. DVC would have no cash since they couldn't book a cash guest before the pts expired and were worthless.

DVC is a business. your lack of planning isn't their concern. so if you have unused, unbanked pts at the end of your UY and have trouble using them at the DVC resorts, it's on you. DVC will not take that risk. therefore, they require 4 months notice if you want to trade out (at the end of your UY).

(to the extent that they have trouble recovering the cash to pay the poly even when you trade 5-6 months in advance...that will be reflected in increased pt costs in the future in order to trade out for the poly. those point charts are not fixed at all.)

 

[Reddog1134]

DVC would most likely not be able to book a cash guest in less than a month since the DVC resorts are booked solid. that's the point.

you stay at the poly. the poly would ask DVC for cash to pay for your stay. DVC would have no cash since they couldn't book a cash guest before the pts expired and were worthless.

DVC is a business. your lack of planning isn't their concern. so if you have unused, unbanked pts at the end of your UY and have trouble using them at the DVC resorts, it's on you. DVC will not take that risk. therefore, they require 4 months notice if you want to trade out (at the end of your UY).

(to the extent that they have trouble recovering the cash to pay the poly even when you trade 5-6 months in advance...that will be reflected in increased pt costs in the future in order to trade out for the poly. those point charts are not fixed at all.)

I understand. I was just poking fun.

 

[DVCowner2009]

Thanks everyone (esp. Charles) for taking the time to explain. Makes sense to me.