Let's say Owner A and Owner B have agreed to a direct exchange, one year in advance.
Owner A owns in SF; Owner B owns in NY.
I'm interested in what happens if Owner A later has to cancel his NY trip. Owner B wants to keep his reservation in SF.
How have you addressed this potential situation in your direct exchange agreements?
This isn't as much of a concern if you are using a point system, which is one reason I think using Direct Exchanges for units in point systems are terrific.
Slum808 and I did a trade -- he booked a DVC unit for me and I booked a Marriott unit for him, each using our system points. Both systems have very accomodating cancelation policies. So if he needed me to cancel the Marriott reservation, he simply has that number of Marriott points to spend on different reservation -- but I still get the DVC side of the trade. In fact, I did have to change the dates once for him after the reservation was initially made, and the availability was there and not a problem to do.
Same situation in a HGVC trade that I did -- but in that one, instead of making weekly reservations for one another, the counterparty transferred me X,XXX Marriott points in exchange for making a reservation for her at HGVC Waikoloa. If she'd had to cancel her trip, I would have made the same number of HGVC points available to her another time.
Accordingly, I agree that Direct Exchanges have alot of potential between TUG owners, and points in particular allow people to leverage their system (Starwood, Hyatt, HGVC, Marriott, Wyndham, DVC) to access other systems (like the HGVC and DVC examples above).
All the best,
Greg