Avoiding Cancellation Penalty

[WalnutBaron]

With the help of HGVC's vaunted customer service folks yesterday, I was able to avoid suffering a 25% point penalty for a late cancellation of a reservation. Due to business considerations, I had to make the tough decision to cancel a trip my DW and I had planned for Hawaii later this month. Because the cancellation was inside the 31 day cancellation window, HGVC clearly states that a 25% cancellation penalty is in order for the points that would have been used for the stay--which would have been about a $500 cancellation fee in my case.

But then the customer service professional gave me an invaluable piece of advice on a little-known rule: if I cancel and immediately re-book to another HGVC resort in the same calendar year and using at least the number of points used in the original booking, my points are saved and there is not only no cancellation fee, but no second reservation fee, either! Furthermore, if I later choose to cancel the second reservation--and assuming I do it prior to the 31-day window taking effect--I will not lose any of the points if I then choose to deposit those points into next year (for a one-time fee of $99).

It certainly helped take the sting out of having to cancel a vacation to Hawaii.

 

[PigsDad]

This is pretty well known around here, but thanks for the reminder if someone hasn't seen it. You need to "change" the reservation, not "cancel and re-book" for this to work. I have personally done this a few times -- like just a couple months ago where I had to change a ski vacation weekend 3 days before we were to leave.

Kurt

 

[GT75]

This will only work for changeable reservations. So why would you need to purchase cancellation protection?

 

[seagila]

So why would you need to purchase cancellation protection?

I book a reservation checking in on 12/23/17. There's a chance I may have to cancel, but won't know if I have to until 12/1/17. If I did have to cancel on 12/1/17, I'm already inside the 30-day window when I would forfeit 25% of the points I used as well as the Reservation Fee (if any). There's no way to change the reservation in the same calendar year without incurring the penalty because it's already December.

Cancellation Protection allows me to cancel up to the day of my check-in, in this example 12/23/17, and still get all my points back (reservation Fee, if any, is not refunded) and then Save them (for a fee) for use in 2018. This might be worth $59 (Cancellation Protection fee) to some members.

 

[1Kflyerguy]

I book a reservation checking in on 12/23/17. There's a chance I may have to cancel, but won't know if I have to until 12/1/17. If I did have to cancel on 12/1/17, I'm already inside the 30-day window when I would forfeit 25% of the points I used as well as the Reservation Fee (if any). There's no way to change the reservation in the same calendar year without incurring the penalty because it's already December.

Cancellation Protection allows me to cancel up to the day of my check-in, in this example 12/23/17, and still get all my points back (reservation Fee, if any, is not refunded) and then Save them (for a fee) for use in 2018. This might be worth $59 (Cancellation Protection fee) to some members.

That is exactly why i often add this for the bigger trips. It gives you flexibility as the points go back to your account. Right now i have a multi-week trip planned to Kings Land in May. My elderly mother just went into the hospital, which could impact my plans. With cancellation protection i get the points back in my account and can use them as desired even for multiple shorter trips. With the changeable reservation strategy i would need to find time and space for trip that uses as many points or more than two weeks at KL. Its early in the year, so it possible but could still be challenging. I consider the 59 bucks cheap insurance for the flexibility, but would probably not add it to long weekend in Vegas.

 

[PigsDad]

With the changeable reservation strategy i would need to find time and space for trip that uses as many points or more than two weeks at KL.

Actually, you don't. You just need to first change the reservation to another that uses at least as many points that is at least a month out. Then you can change that new reservation to something that uses less points -- even 3 mid-week nights in a studio during Silver season will do (a total of 330 points).

Kurt

 

[hurnik]

This will only work for changeable reservations. So why would you need to purchase cancellation protection?

When you've booked something later in the year, and your mother takes ill at the last minute, so you are forced to cancel your reservation because you wont' be able to rebook for Nov/Dec and use the points.

Granted, you're out the $59 and $59 (reservation and cancellation fee), but I didn't lose my points (although ended up having to deposit into RCI).

Travel insurance will only cover the $59 and $59 fees, not the points.

If, however, you've booked something early in the year and have like 9 more months and you know you can/will use them, then possibly cancellation protection can be skipped.

 

[alwysonvac]

With the help of HGVC's vaunted customer service folks yesterday, I was able to avoid suffering a 25% point penalty for a late cancellation of a reservation. Due to business considerations, I had to make the tough decision to cancel a trip my DW and I had planned for Hawaii later this month. Because the cancellation was inside the 31 day cancellation window, HGVC clearly states that a 25% cancellation penalty is in order for the points that would have been used for the stay--which would have been about a $500 cancellation fee in my case.

But then the customer service professional gave me an invaluable piece of advice on a little-known rule: if I cancel and immediately re-book to another HGVC resort in the same calendar year and using at least the number of points used in the original booking, my points are saved and there is not only no cancellation fee, but no second reservation fee, either! Furthermore, if I later choose to cancel the second reservation--and assuming I do it prior to the 31-day window taking effect--I will not lose any of the points if I then choose to deposit those points into next year (for a one-time fee of $99).

It certainly helped take the sting out of having to cancel a vacation to Hawaii.

Thanks for sharing.
I was wondering if the changeable reservation option still allowed this in the new reservation system.

 

[Talent312]

The strategy of changing dates to M/T 30 days out and then cancelling or changing to less (in the same year) to avoid a penalty has been time-honored. Usually, its done online in two separate sessions.

I thought that HGVC would block it, if they could ever figure out how. It's interesting that a CSR was willing to help a caller with it. Apparently, not only is it well-known to them, but they're not keeping it a secret from callers.

BTW, the change-strategy can also be used to avoid the rule that prohibits booking open-season for the same dates as a cancelled point-booking.
.

 

[1Kflyerguy]

Actually, you don't. You just need to first change the reservation to another that uses at least as many points that is at least a month out. Then you can change that new reservation to something that uses less points -- even 3 mid-week nights in a studio during Silver season will do (a total of 330 points).

Kurt

Thanks, that makes sense. I am still happy i got the insurance this year, but as stated above will use it selectively depending on the trip.

 

[alwysonvac]

The strategy of changing dates to M/T 30 days out and then cancelling or changing to less (in the same year) to avoid a penalty has been time-honored. Usually, its done online in two separate sessions....

......BTW, the change-strategy can also be used to avoid the rule that prohibits booking open-season for the same dates as a cancelled point-booking.
.

Here are some old threads that discuss the options that Talent312 mentioned above.

Open Season (May 2009) - http://tugbbs.com/forums/index.php?threads/open-season.97378/
Huge Warning on late reservation changes (June 2010) - http://tugbbs.com/forums/index.php?threads/huge-warning-on-late-reservation-changes.127174/

 

[SmithOp]

I thought that HGVC would block it, if they could ever figure out how.

BTW, the change-strategy can also be used to avoid the rule that prohibits booking open-season for the same dates as a cancelled point-booking.
.

They did figure out how to block this move - raise open season rates so its no longer cheaper than points. I have a low point cost on GT75s top 15 list.


Sent from my iPad using Tapatalk

 

[GT75]

I currently have a previously changeable reservation within the 30-day window which now doesn't show as non-changeable on the web-site. If I did want to move that reservation (per this discussion), it looks like I would need to call a CC. I really don't see an issue because I have never used that option yet anyway. If I do ever need it, I will now know how to handle because of the great help of all of you.

 

[Helios]

Actually, you don't. You just need to first change the reservation to another that uses at least as many points that is at least a month out. Then you can change that new reservation to something that uses less points -- even 3 mid-week nights in a studio during Silver season will do (a total of 330 points).

Kurt

Love it how much you can learn here...Thanks Kurt...

 

[alwysonvac]

I currently have a previously changeable reservation within the 30-day window which now doesn't show as non-changeable on the web-site. If I did want to move that reservation (per this discussion), it looks like I would need to call a CC. I really don't see an issue because I have never used that option yet anyway. If I do ever need it, I will now know how to handle because of the great help of all of you.

Hmm... The online changeable reservation state would normally remain within the 30 day window. Sounds like they are now blocking it online.
If they've implemented a rule to block it online, I wonder if the reps will still be able to avoid the cancellation rules

 

[GT75]

If they've implemented a rule to block it online, I wonder if the reps will still be able to avoid the cancellation rules

The reps would still allow because it is in the rules.

If the reservation change uses the same or a greater number of ClubPoints required for the stay, the change may be made up to one (1) day prior to check-in. If the reservation change decreases the number of ClubPoints required for the stay, the change may be made without penalty up to 31 days in advance of the check-in date. Within 30 days prior to arrival, no changes can be made and the standard cancellation policy applies.
​

It might be just a glitch with this particular reservation. I have another reservation in September which I will monitor to see what happens.

 

[alwysonvac]

The reps would still allow because it is in the rules.

If the reservation change uses the same or a greater number of ClubPoints required for the stay, the change may be made up to one (1) day prior to check-in. If the reservation change decreases the number of ClubPoints required for the stay, the change may be made without penalty up to 31 days in advance of the check-in date. Within 30 days prior to arrival, no changes can be made and the standard cancellation policy applies.
​

It might be just a glitch with this particular reservation. I have another reservation in September which I will monitor to see what happens.

Thanks, hopefully it's a glitch.

It's the last sentence that states "Within 30 days prior to arrival, no changes can be made and the standard cancellation policy applies."
But perhaps the reps will now offer the fee based cancellation protection option - http://tugbbs.com/forums/index.php?threads/cancellation-protection.227922/

 

[GT75]

It's the last sentence that states "Within 30 days prior to arrival, no changes can be made and the standard cancellation policy applies."

You got to just love the english language and the wording of rules. {not, of course}. Anyway, I see that sentence only applying to the previous sentence. I don't see how it could apply to the first sentence since it would then be contradicted.

@alwysonvac, you always amaze me how you remember and find the previous posts on a subject.

 

[hurnik]

You got to just love the english language and the wording of rules. {not, of course}. Anyway, I see that sentence only applying to the previous sentence. I don't see how it could apply to the first sentence since it would then be contradicted.

@alwysonvac, you always amaze me how you remember and find the previous posts on a subject.

I agree, that the wording is very poor, but it would only make sense to apply to the previous sentence, not the first sentence.

Cancellation protection just protects the points, not the fees. You still lose those. Found that out. Had booked Carlsbad GPP for my sister for October 2016. Our mother ended up in hospice that week (3 days notice, obviously not something plannable), so she had to cancel the reservation and we had no other plans to book for 2016. At least I got the points back (ended up also having to rescue those), but lost the $59, $55, and $39 fees of course. But had more important things on my mind than the points at that stage.

 

[alwysonvac]

I agree. The way it's currently written it should only applies to the previous sentence. However there have been issues in the past with HGVC's wording.

Depositing, then saving points - http://tugbbs.com/forums/index.php?threads/depositing-then-saving-points.249433/

Home Week - http://tugbbs.com/forums/index.php?threads/home-week.205180/#post-1838285

Also, keep in mind, HGVC can change the rules at anytime (But according to the Club Members Guide, changes will not apply to transactions confirmed prior to the effective date of the change).