In the hospitality industry, a shift is underway in how hotels generate revenue and increase asset value. Beyond optimizing room rates, hoteliers are now leveraging new technologies to boost ancillary revenue and elevate the guest experience.
As recent fluctuations in revenue per available room (RevPAR) put pressure on margins, leaders are looking toward operational efficiency and untapped property assets to drive profitability without compromising the guest experience.
In our new video series – SpotOn – we speak with hospitality leaders to dive into their journeys and discover how their expertise is helping them overcome modern challenges and push the industry forward.
We’re kicking things off with Joe Gragg, a 20-year hospitality veteran who rose from dishwasher to leading operations at some of the nation’s premier hotels. He sat down with our CEO & Co-Founder, Ethan Glass, to tell us his story and his take on everything hospitality.
Joe has experience across every facet of hotel operations, moving seamlessly from Food & Beverage into Rooms and Transportation. His “hands in the pots everywhere” approach to cross-training is what sets hotel leaders up to have a holistic approach to the business of hospitality.
Here are the main takeaways from our conversation:
Maximizing Ancillary ROI
Rather than being treated as mere “utilities,” parts of a hotel’s infrastructure should be viewed as high-margin revenue drivers with low overhead.
In a labor-heavy industry, growth traditionally demands higher payroll, which can quickly erode margins and create significant barriers to increasing Net Operating Income (NOI). This pressure reached a breaking point in 2025 as labor costs accelerated; in Q4 alone, the wage cost per occupied room surged 21.1% year-over-year – a spike more than double the pace seen throughout the rest of the year.
“We’re trying to be aggressive and be creative with our new managers that we have in the hotel to really look outside and think outside the box for ways that’s not only to increase customer service but increase revenue as well.” – Joe Gragg
Parking is no longer just a static guest amenity; it is a sophisticated, high-margin revenue stream. Unlike rooms or dining, which require heavy labor and high operating costs, parking offers massive profit potential with almost no overhead. By treating every square inch of an empty lot with the precision of a revenue manager, these spaces become powerful drivers of income rather than simple utilities.
Balancing revenue generation with delivering a premium guest experience
The primary concern with investing labor and resources into generating ancillary revenue is the risk of “tanking” the guest experience. To prevent this, Joe relies on live data and real-time flexibility to stay ahead of operational shifts. One example is “anticipating compression” of room and parking assets for a 1,000-person wedding. By giving Ocra advance notice of an influx of guests and event attendees, parking can still be managed at 100% capacity without compromising service quality.
At airport properties, where the arrival and departure experience defines the brand, the shuttle service becomes a key competitive differentiator. Digital tools like TrackMyShuttle allow for precise monitoring of driver speed, location, and arrival times. Providing guests with transparency and data accurate within 10 seconds transforms a basic utility into a reliable, high-tech touchpoint.
“Unlike the majority, we’re the only hotel that runs 24 hours, which is a big nod there too. We have the most aggressive terminal stop, which is every 15 minutes. You know what’s coming and you can plan for it, prepare for it, and then your day is smooth after that.” – Joe Gragg
Simplifying operations through tech consolidation
Moving away from fragmented vendor relationships is a critical step in streamlining operations. In the past, managing multiple parking vendors created too many moving parts and left inventory unsold. Simplifying the tech stack and vendor list directly correlates to higher revenue and lower stress; when hotel operators aren’t bogged down by constant follow-ups, they can refocus on high-level strategy.
“It’s taken a lot off my plate. As a testimonial, it gives me time back in my week. Before, you were meeting every day with somebody you just didn’t have the time for. It’s not that they’re not important. It’s just how can we get this all together into one?” – Joe Gragg
Transitioning toward a “one-stop shop” allows a hotel to function as a single, cohesive unit rather than a collection of disconnected departments. This unified approach ensures that all assets are working in sync to maximize profitability.
Join The Conversation
If you would like to share your perspective or be a guest on an upcoming episode of SpotOn, please reach out to Tiffany Gabriel at tiffany@getocra.com.
About Ocra
Ocra is an AI-powered Revenue Management System (RMS) and Global Distribution System (GDS) purpose-built for hotel parking assets. Hotels use Ocra to sell underutilized parking inventory to non-guest customers using online marketplaces (“parking OTAs”) to find parking near airports, venues, and other hotspots. Ocra’s team of parking revenue management experts drives growth without adding labor or disrupting operations, helping hotels increase net operating income (NOI) while never compromising guest parking.
20+ hotel groups partner with Ocra to achieve optimum yield of their parking assets – including MCR, Starwood Capital Group, Aimbridge, Stonebridge, Highwood Properties, Concord Hospitality, and OTH Hotels & Resorts.
Ocra has raised $10M in strategic funding to date – $3.5M in an oversubscribed round in April 2024 led by MCR and Parker Technology, and $5M led by Trestle Partners with significant follow-on from MCR in August 2025.For more information, visit getocra.com or email info@getocra.com.
