Why Not Do Away With Banking Deadlines?

[casper]

Since DVC is changing the rules on when and how you can bank points it has me asking a question. Why not just do away with the banking windows altogether? Why not just say, “Whatever points you have remaining in your use year will automatically be banked into the following use year where they must be used or they will expire.”

What is the advantage for DVC anyway with a banking deadline? I can’t imagine that there is much to be gained by the few people who lose their points because they miss their deadline? And it shouldn’t affect room occupancy and availability does it? And I think the marketing strategy would be so much better if they were able to say that unused points automatically get banked into the next use year. And if they want simplicity – it doesn’t get any easier than that.

But there must be some advantage for the system or they would not be doing it in the way they have chosen. Any ideas?

 

[fishermouse]

Once you've banked your points DVC can rent the time associated with those points, this can be significant income for DVC. My UY is Dec DVC knows by the deadline whether or not I will be using them and can also anticipate for the next year the additional time they will need for my banked points. Unfortunatly I'm more a borrower than a banker. Already figured out that with my AKV points I can go there every year for five years by borrowing then I have to skip a year, or use some SSR points for AKV. Of course now with the AKV points I may have SSR points left to bank now and then, or I may have to make an extra trip every year

 

[JimMIA]

Once you've banked your points DVC can rent the time associated with those points, this can be significant income for DVC.

Are we sure this is correct? I know if we exchange out of DVC they get the availability, but if we're banking, we're really not giving them anything, nor are we getting anything in return. We're just transferring our points from one UY to another.

I don't think mere banking of points removes any lodging availability from the DVC owners' inventory. I could be wrong.

Sixty days out, any unused points inventory goes to CRO to rent, but they don't get that money. Most of that money comes back to us in the form of "breakage income," and helps defray our maintenance fees.

 

[JimMIA]

I like OP's idea, BTW. I know many points based timeshares have points that are valid for two years. With banking and borrowing, of course, our points are actually valid for three years.

However, it doesn't seem to me that a deadline makes any difference. You're either going to use the points or you're not -- seems to me the more flexibility they give us, the better product it is for them to sell. Why not just have unused points carry over?

Also, I bet automatic carryover would curtail a LOT of renting -- more effectively, and with less effort and expense than their current strategies.

 

[DiznyDi]

I think you're on to something here!
Automatic banking: "Oh what a wonderful world it would be"
Great Idea, Simple, Straightforward. Less phone calls to MS, less unhappy members. Someone should start a poll.

 

[OKWKirt]

I also belong to Bluegreen Vacation Club and they changed to this policy a couple years ago. It used to be we had up until four months before the end of our UY to bank up to 100% but now what points aren't used at the end automatically are saved (banked). I had to borrow points this year and I'm nearly 100% sure those points are now good for three years (this year, next year which they came from, and will be saved the following year if not used). The last time I had them confirm my points, a couple months ago, they said these points (borrowed in March) are good through 7/31/08 and will roll over until 7/31/09. It's a great system with the only draw back is you can't use saved (banked) point for high red season and above.

 

[PamOKW]

I think DVC has always been concerned about things becoming "out of balance"......there is wording that allows them to suspend banking and/or borrowing if necessary. I'm not sure how they calculate but maybe they need a cushion to be sure things are working smoothly that can't be done if all points rollover. Just guessing