So, the sales department at Ceasar’s called the Flamingo Hilton sales department and asked them if they would take the group at their negotiated rate of $110 per night, which would be an industry courtesy.  Providing the group with the “matching” room-rate was not the problem. 

It was Ceasar’s who had the “direct bill” arrangement, which extended payment privileges to the corporate group of “Net 30", meaning that the group would pay Ceasar’s its room charges within thirty days from the day the group checked out of Ceasar’s. 

The problem was that the Flamingo Hilton did not physically have the time to run a “credit check” on the group.  Lastly,  for most corporate and tour groups, the designated “tour leader” does not carry enough monies to be able to pay the Flamingo Hilton “up front”. 

So, the Flamingo Hilton wanted the business.  They called back Caesar’s and said, “We will take the group, if you write us a letter saying that you will guarantee that we will be paid for the rooms, if this client doesn’t pay us.  In other words, shifting the “risk” to Ceasar’s. 

The bottom line is that Ceasar’s declined the offer, and began to call other hotels.  Now, had the Flamingo Hilton in Las Vegas had the “Pre-Authorization” program of CrossCheck, they would have been able to have easily attain a guarantee from CrossCheck that they could take the group before the group arrived at the hotel. 

In other words, the “Pre-Authorization” program of CrossCheck would allow the Flamingo Hilton Las Vegas to be able to take risky “last minute group business” without any risk.  In fact, the group could even open up a “Master Account” which would cover any and all incidental charges of their guests, banquet events, theater tickets, or other profit centers for the hotel.  Instead of losing a 
$10,000 piece of “short-term” business, the client would only have to give the hotel their corporate phone number for “Pre-Authorization.”