The term “F.I.T.” has had two meaning over the years.  It used to be called “Foreign Incentive Travel” because, originally, International Tour Operators would set up a “direct bill” arrangement with the hotel, and the hotel would send a bill out on a “Net 30" basis to the International Tour Operator. 

This practice was quite risky.  However, it should be noted that during the 1980's, over 1 out of every 3 hotel rooms sat empty every night in the United States.  Hotels that were in tourist destinations and relied on these leisure travelers who stayed an average of 2.7 room-nights (1 to 4 people occupying one room, for one night) instead of 1.2 room-nights that a corporate traveler would stay would throw off more revenue.  Also, because these travelers were on set itineraries for their airfares, they rarely changed or canceled their reservations.  This was unlike Corporate travelers who made an average of 5 changes per reservation, according to Corporate Travel Magazine. 

So, because a hotel room is a “perishable commodity” in that once it is not sold, the hotel cannot ever regain that lost revenue, hotel sales departments actively solicited these F.I.T. travelers.  The problem that this program created is that the hotel sometimes “lost” the voucher that the guest had presented to them at the hotel. 

Because of the hundreds of vouchers that these tour operators generated, their contracts called for the hotels to send them a copy of the used vouchers with their monthly statement.  If the hotel lost the guest voucher they were not paid.  Also, if the tour operator did not pay in a timely manner, as is “still the norm”, the hotel becomes a collection agency. 

If the Foreign Tour Operator has an office in the United States, with corporate checks from a United States or Canadian Bank, the hotel can use the CrossCheck “Pre-Authorization” program to ensure payment on all of these F.I.T. transactions.  The hotel simply constructs their annual contract with the tour operator that includes verbiage to indicate that the hotel will obtain a “Pre-Authorization” for each F.I.T. transaction to ensure that the hotel will be paid before the guest(s) occupies the room(s).  CrossCheck becomes a great sales tool in being able to do business with any tour operator without risk.