HGVC Maintenance Fee Refunds 2020/2021?

[HGVC Lover]

I know we have not been able to use any of our 28,000 HGVC points this year and I am not sure about using them rest of the year either because of HGVC resort closures due to COVID-19.

Our insurance company gave us back 25% of our car insurance premium because we are driving less in the age of COVID-19.

I was wondering about people's thinking in regards to HGVC giving back a percentage of people's 2020 MF's or a partial credit for 2021 MF's because most resorts were closed or are still closed and I am assume maintenance costs were down for those properties and also staff salaries to run them.

 

[pedro47]

A maintenance fee refund from a timeshare. I feel you have better odds winning the lottery. LOL

 

[linsj]

I'd be happy with no increase next year.

 

[Arimaas]

I know we have not been able to use any of our 28,000 HGVC points this year and I am not sure about using them rest of the year either because of HGVC resort closures due to COVID-19.

Our insurance company gave us back 25% of our car insurance premium because we are driving less in the age of COVID-19.

I was wondering about people's thinking in regards to HGVC giving back a percentage of people's 2020 MF's or a partial credit for 2021 MF's because most resorts were closed or are still closed and I am assume maintenance costs were down for those properties and also staff salaries to run them.

I understand your position - but the property (which we all own) still needs to be maintained - landscaping, HVAC, plumbing, etc. I guess there was savings on staff cost and they could return that to the owners, but honestly, if given the option, I rather them pay their staff instead of giving me back a percentage (both of which are unlikely scenarios IMHO).

 

[buzglyd]

It’s not HGV’s money. It belongs to the HOA of which you are a part.

 

[SmithOp]

It would be nice if the 2021 HOA fee increases are $0 or even reduced.

I understand there is a fixed cost to keep the lights on but surely there is a reduction in energy costs with the units empty for a portion of the year. That should leave some funds in the operating costs to carry over to next year. Then again, that might be used up by increase in cleaning costs once it re-opens.




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[PigsDad]

@HGVC Lover, I assume that you would forfeit your 2020 points in lieu of those maintenance fees, correct?

Kurt

 

[Talent312]

...surely there is a reduction in energy costs with the units empty for a portion of the year....

They prolly also laid off the cleaning crews, reception, activities and cafe staff.
I wonder if there was much more than the gardners, pool peep & security on site.
,

 

[ocdb8r]

I don't think there is any chance we will see any refunds. While there should be some savings, the magnitude of these is hard to predict. While they could have laid off some staff, I'm haven't seen any information from any of the big timeshare companies that they actually did. They actually have no incentive to do so - we have already paid our maintenance fees for the year and most management contracts base the remuneration as an overall percentage of each resort's budget. Therefore, they are incentivized to keep staff on.

Regardless, I think there will be some measure of savings. However, there is also likely to be increased costs and resorts get back up and running. The additional cleanliness and safety measures will not come free. Resorts will have to employ additional staff, buy new cleaning products and perhaps additional equipment to satisfy local lodging requirements.

Like others have posted, I'd be happy if we see zero increase in fees for next year.

 

[bogey21]

I don't think they should be able to have it both ways. Either take (and not cancel) Reservations or refund all or part of MFs. It is too much of a one way street...

George

 

[Talent312]

Any savings will likely be equivalent to increased defaults.
So the rest of us will be stuck with the bills, so to speak.

 

[PigsDad]

I don't think they should be able to have it both ways. Either take (and not cancel) Reservations or refund all or part of MFs. It is too much of a one way street...

With a traditional week-based timeshare, maybe, but HGVC is a point system and the members are receiving their points back from any reservation that has been cancelled due to the resort being shut down. The member can then use those points to book something else at a later time. No value is lost.

Kurt

 

[bogey21]

The member can then use those points to book something else at a later time. No value is lost.

I have never owned Points so I'm not one to be pontificating here but it seems to me that with unusable Points accumulating in Owner's accounts the situation may arise where too many Points are chasing too few Weeks before the Points expire. But like I said I have never owned Points and could be dead wrong here...

George

 

[PigsDad]

I have never owned Points so I'm not one to be pontificating here but it seems to me that with unusable Points accumulating in Owner's accounts the situation may arise where too many Points are chasing too few Weeks before the Points expire. But like I said I have never owned Points and could be dead wrong here...

That's a valid concern, and HGVC members will probably experience a little more difficulty finding those great reservations due to more competition, but members have many places where they can use their points outside of HGVC resorts. That includes RCI, converting to Hilton Honors to use at Hilton's family of hotel chains, plus some other travel partners. With HGVC having many resorts to choose from, while people may not get their first choice in reservations, I think most will find good use for their points.

Kurt

 

[HGVC Lover]

With a traditional week-based timeshare, maybe, but HGVC is a point system and the members are receiving their points back from any reservation that has been cancelled due to the resort being shut down. The member can then use those points to book something else at a later time. No value is lost.

Kurt

Time is value.....there could be a majority of a year go by where HGVC owners paid their MF's in good faith but were unable to use their points because the HGVC product was unavailable through no fault of their own.....I do not think my MF's for this year I really getting me anything at this time....

 

[Tamaradarann]

Time is value.....there could be a majority of a year go by where HGVC owners paid their MF's in good faith but were unable to use their points because the HGVC product was unavailable through no fault of their own.....I do not think my MF's for this year I really getting me anything at this time....

I agree with you your maintenance fees are NOT getting you anything right now in the resorts that are closed. However, I just noticed on the website this morning that resorts I have resrvatons at in Florida are open and it is indicated on the website for my reservations. You could use your points to reserve at resorts that are open.

Furthermrore, alot of people are not getting what they paid for and what they were getting before the virus. This is a pandemic all over the world. Everybody and all organizations have been effected by it and have had to adjust. There are still many costs in the resorts that are closed in 2020. HGVC is providing some relief to members by extending points and allowing no cost reservations. Perhaps they will refund some of the maintenance fees or lower the mainteance for next year since they will have some savings from this year. We will need to wait and see.

 

[JIMinNC]

I don't think they should be able to have it both ways. Either take (and not cancel) Reservations or refund all or part of MFs. It is too much of a one way street...

George

The maintenance fees are independent of usage/reservations. As a timeshare owner, you are a partial owner of the property and have to pay all costs to maintain and operate the property. If you owned a vacation home yourself, you would still have to pay property taxes, utilities, maintenance costs, insurance, etc. whether you used your home or not. Owning a timeshare is no different except you share those costs with many other owners.

 

[bogey21]

The maintenance fees are independent of usage/reservations. As a timeshare owner, you are a partial owner of the property and have to pay all costs to maintain and operate the property. If you owned a vacation home yourself, you would still have to pay property taxes, utilities, maintenance costs, insurance, etc. whether you used your home or not. Owning a timeshare is no different except you share those costs with many other owners.

As my experience has been owning Fixed Weeks where I totally agree with this comment. It just seems to me that owning Points should be a different animal. I guess it comes down to the language in the contract as to whether you own Real Estate or a Membership...

George

 

[Talent312]

As my experience has been owning Fixed Weeks where I totally agree with this comment. It just seems to me that owning Points should be a different animal. I guess it comes down to the language in the contract as to whether you own Real Estate or a Membership...

HGVC is kinda both. You get a deed with a week, but it's a flex-week, meaning:
You can book a week at your resort in the same size/season you own (12 mos. out).
But you can also opt to use the points it carries to book 3N+ anywhere (9 mos out).

Either way, you share in the operating expenses of your home-resort.
More significant is that the HOA boards are captives of the parent HGVC.
IOW, your MF's are generally subject to the whims of HGVC's executives.

 

[JIMinNC]

As my experience has been owning Fixed Weeks where I totally agree with this comment. It just seems to me that owning Points should be a different animal. I guess it comes down to the language in the contract as to whether you own Real Estate or a Membership...

George

If the points were structured as a "membership" then it might be different, but the major point-based systems like HGVC, Marriott, Westin/Sheraton, etc. are all structured as deeded real estate. As @Talent312 said, HGVC is a deeded week real estate ownership, but the points are an added benefit under the contract as an internal exchange enhancement with other HGVC resorts. In Marriott and Westin/Sheraton there are deeded weeks with a similar type of point allocation for each week, as well as additional ownership options to buy deeded interests in a real estate trust. But in all of these the underlying ownership is an interest in real estate, so you are an owner and responsible for your share of the ongoing operating expenses regardless of whether you can use the property or not. That ownership can be monetized as points, but it is a real estate interest nonetheless.

 

[bogey21]

Excellent explanation. Thanks...

George

 

[JudyS]

Disney Vacation Club has said it may give refunds due to savings on closed units.

I heard Westin St John gave refunds after they were closed due to hurricane, but the presumably had hurricane insurance to help them meet costs.

 

[brp]

Disney Vacation Club has said it may give refunds due to savings on closed units.

Interesting. Do you have a link on this? We own DVC and I read a DVC board and haven't heard anything about this.

Cheers.

 

[dayooper]

Been watching this thread since it started. A couple of things I would like to add.

I seems to me that next year is going to be a difficult year for these resorts. Since HGVC is pushing saved 2019 points to 2021 and many aren’t traveling this year, also saving their points, the resorts are going to be jammed packed next year. Even the less popular resorts are going to be busier than usual. The maintenance crews are going to be working more and, with the new cleaning procedures and greater occupancy, the cleaning crews will need to be working more hours or new hires will have to be made. What funds aren’t being used this year may be used next.

While it’s not the entire time off, fees have been working setting up and learning the procedures when they do open up.

I have been very impressed with the staff at the resorts I’ve been to. They are very courteous and helpful. An example I have is one of the maintenance workers at Ocean 22. My 9 year old locked the bathroom door and we could not get in. We were embarrassed that we had to call. The gentleman can in, fixed the problem and made us feel like it happened all the time. That kind of worker needs to be kept. Not that I think it will happen, but I sincerely hope that these people got paid somewhat during closure.

As long as my MF’s don’t go into corporate hands and stay with my resort, I really don’t need to have my MF’s returned. They aren’t that large to begin with and would like my resort kept up to the shape it can.

 

[jabberwocky]

I seems to me that next year is going to be a difficult year for these resorts. Since HGVC is pushing saved 2019 points to 2021 and many aren’t traveling this year, also saving their points, the resorts are going to be jammed packed next year. Even the less popular resorts are going to be busier than usual.

This is a good point - I've wondered whether HGVC wouldn't benefit by offering an extended period for saving points (say 2020 points could be used in 2022 or 2023) for an extra fee. This would help spread out the pain from a single year and I'm sure some people would pay extra for the additional flexibility.