When will this 50% limit on borrowing end?

[disprincess2213]

I may be in the minority here but this new rule is upsetting. I know it used to be like that in the 90s but we purchased dvc around 2013 and have never known different than borrowing 100%. We purchased our points knowing we could always borrow. It has really changed things, and understandably due to covid. Now that things are goimg back to normal, any ideas on when dvc will too?

 

[Heather07438]

Honestly... I think they’re going to need for a while. There’s still a huge back log of points and DVC is already booking up quickly. Most international owners have a pile of points that most aren’t planning until 2022 to use.

Can’t say for sure but 2022 could need the restriction even more than 2021 did.

 

[we"reofftoneverland]

When enough people complain. There seems to be plenty of cash bookings available. I think they are using dvc to make money while they keep their non dvc hotels closed.

 

[YourEveryDayAdam]

Honestly? 2022 at the earliest...I wouldn't be surprised to see the 50% borrowing rule last through 2023 or 2024.

The closures, foreign travel restrictions, and a lack of desire by the general public to travel has left a glut of probably 10+ million points. Remember that the FL DVC resorts were closed for months. Even when they reopened, most rooms sat empty because nobody wanted to travel. Aulani DVC was closed for 8 months. Grand Californian just reopened 3-ish weeks ago.

There is easily 10+ million points of inventory that was either unable to be booked due to closures or that sat empty because people couldn't/wouldn't travel. On top of that, DVC extended banking deadlines, resurrected expired points, unborrowed points, removed any holding points limitations, and pretty much removed any ways that points would be lost due to non-use. Pretty much everyone overseas from the US hasn't been able to use their points because international travel has, for the most part, been restricted.

What that all means is that there is pretty much TONS of folks out there with 1 year of banked points and their current year of points all ready and anxious to be used. DVC inventory is being snapped up real quick.

I'm guessing it will be years before before the rules are returned to allowing borrowing more than 50% of points.

 

[Bearval]

When enough people complain. There seems to be plenty of cash bookings available. I think they are using dvc to make money while they keep their non dvc hotels closed.

I think if enough people complain that in the future if a similar situation happens again, DVC will let points expire, not extent banking and not let points be unborrowed. We just all need to suck it up and be glad DVC did something they did not have to do.

 

[Marionnette]

This question gets asked and the answer is the same today as it was last week...When the glut of extended and banked points from the pandemic get depleted. A lot of members are banking more than the usual number of points and those who live outside of the U.S. borders cannot travel to Disney. DVC has kindly extended their points when asked to do so. Allowing more than 50% borrowing would just throw the total points in system further out of whack.

 

[DduzDis]

I am a little uninformed when it comes to the back office of the point system, but if allowing more than 50% borrowing would cause a family to visit in a 2BR vs the Studio they can afford with the limit in place wouldn't that cause the glut to decrease sooner? There still has to be room availability in place for them to move up to a 2br in this situation. So if it is available and they move to the 2br that would inherently use more points. I am sure I am missing something. But, it seems the 50% limit actually extends the glut.

 

[Chuck S]

I am a little uninformed when it comes to the back office of the point system, but if allowing more than 50% borrowing would cause a family to visit in a 2BR vs the Studio they can afford with the limit in place wouldn't that cause the glut to decrease sooner? There still has to be room availability in place for them to move up to a 2br in this situation. So if it is available and they move to the 2br that would inherently use more points. I am sure I am missing something. But, it seems the 50% limit actually extends the glut.

Except that it would put more points into the system than there is availability. There is a legal limit to the ratio of points in the system to the available units. Until the glut of banked points is used up, increased borrowing could cross that line. I expect the borrowing limit to be in place for a while, until at least the end of 2022, since were already booking into that year, maybe it will be lifted for 2023 reservations. Remember, the borrowing limit was originally 50% when DVC first started, and there was a lottery system for Christmas/New Year reservations.

 

[DduzDis]

Except that it would put more points into the system than there is availability. There is a legal limit to the ratio of points in the system to the available units. Until the glut of banked points is used up, increased borrowing could cross that line. I expect the borrowing limit to be in place for a while, until at least the end of 2022, since were already booking into that year, maybe it will be lifted for 2023 reservations. Remember, the borrowing limit was originally 50% when DVC first started, and there was a lottery system for Christmas/New Year reservations.

Thanks. I think I get it. And my understanding is that all of the DVC resorts are fully open right now correct? So no chance of adding more units to the current equation?

 

[Brett Wyman]

They may even use this chance to make it a semi-permanent change. I wouldn't be surprised.

Our cadence was one of always borrowing based on when we bought. So we did a partial cash year to stock back up so we don't worry about the borrowing anymore.

 

[Chuck S]

Thanks. I think I get it. And my understanding is that all of the DVC resorts are fully open right now correct? So no chance of adding more units to the current equation?

All are open, but it depends if Riviera is fully "declared" as part of DVC, or if they are declaring units in phases. For instance, a Resort could be finished and open, but only 25% of the rooms declared into DVC (rooms have to be declared and added into the system before sales and reservations of those units are allowed). Sometimes they declare an entire resort immediately, sometimes they do it in phases. I don't know whether Riviera is fully declared or not...but I imagine someone will drop into the thread with the answer. Until rooms are declared into DVC, they are Disney cash rooms to do with as they please.

 

[DduzDis]

All are open, but it depends if Riviera is fully "declared" as part of DVC, or if they are declaring units in phases. For instance, a Resort could be finished and open, but only 25% of the rooms declared into DVC (rooms have to be declared and added into the system before sales and reservations of those units are allowed). Sometimes they declare an entire resort immediately, sometimes they do it in phases. I don't know whether Riviera is fully declared or not...but I imagine someone will drop into the thread with the answer. Until rooms are declared into DVC, they are Disney cash rooms to do with as they please.

Good info. Thanks!

 

[CaptainAmerica]

Except that it would put more points into the system than there is availability. There is a legal limit to the ratio of points in the system to the available units. Until the glut of banked points is used up, increased borrowing could cross that line. I expect the borrowing limit to be in place for a while, until at least the end of 2022, since were already booking into that year, maybe it will be lifted for 2023 reservations. Remember, the borrowing limit was originally 50% when DVC first started, and there was a lottery system for Christmas/New Year reservations.

One of the problems is that they put the restriction into place when demand was way down, which actually exacerbated the problem. Use Year 2021 is going to be extremely high demand as we come out of COVID, while travel was extremely low in Use Year 2020. If they had let people borrow fully in UY2020, they would have pulled points out of UY2021, thus relieving some of the glut.

Simple, personal example... I wanted to go to Aulani a few months ago when the resort was practically empty. But I would have needed full borrowing privileges. Because I couldn't borrow, that villa I would have booked likely went entirely unfilled and I have extra points going forward that I'll be using to compete with others in a much higher-demand environment.

 

[TikiRob]

The limitation is understandable but I'm frustrated that resale owners can't borrow without calling in. I've lost a couple of rooms I wanted because of this (off-hours). I even had member services lose a reservation for me while trying to get it borrowed in their system!

 

[HawaiiRose]

When I called Member Services a week or so ago, I was told they could not say with certainty, but the thought was that the 50% borrowing cap will stay through 2021 but may ease back some time in 2022.

 

[Grumpy by Birth]

When I called Member Services a week or so ago, I was told they could not say with certainty, but the thought was that the 50% borrowing cap will stay through 2021 but may ease back some time in 2022.

That's a pretty optimistic timeline. It would be great if it turns out to be true, but I'd take it with a grain of salt.

Unless you also hear it from this guy...


In that case, it's 100% true!

 

[mort1331]

We all see a glut of.points. but there are many that are not on here or fb. Those and there are many, do not know the ins and outs. They buy direct, never resale no matter how many points they have. They have been in a borrow trend for some time before all this. They also did not know about having their points extended, just let them expire.
I know this because i have friends that have over 1000 points all direct, use on cruise, and for trade. And had no idea.
Not sure how many others are out there like that.

 

[RebelScum]

One of the problems is that they put the restriction into place when demand was way down, which actually exacerbated the problem. Use Year 2021 is going to be extremely high demand as we come out of COVID, while travel was extremely low in Use Year 2020. If they had let people borrow fully in UY2020, they would have pulled points out of UY2021, thus relieving some of the glut.

Simple, personal example... I wanted to go to Aulani a few months ago when the resort was practically empty. But I would have needed full borrowing privileges. Because I couldn't borrow, that villa I would have booked likely went entirely unfilled and I have extra points going forward that I'll be using to compete with others in a much higher-demand environment.

I couldn't agree more! I wanted to use borrowed points in 2020 when rooms when there was plenty of availability (August 2020), which I have suspected will make 2021/2022 points surplus even worse.

 

[Bearval]

I couldn't agree more! I wanted to use borrowed points in 2020 when rooms when there was plenty of availability (August 2020), which I have suspected will make 2021/2022 points surplus even worse.

What was the date that Hawaii lifted the 14 day mandatory quarantine period for out of state travelers?

 

[gharter]

I don't see this changing until most of the backlog of points is used up or expired.