An Exploratory Analysis of Dimensions Affecting Purchasing of Food & Beverage Raw Materials for Small Hotels in Himanchal Pradesh

The Indian hotel industry is one of the most rapidly growing segments of Indian economy. Like any other business, right quality and quantity of raw material is the best tool to enhance their guests’ satisfaction, quality of final products and, ultimately, profits. The paper intends to explore various factors that affect purchase practices in small hotels of Himachal Pradesh.

Exploratory factor analysis with varimax rotation is used to reduce the variables under various dimensions which were part of a questionnaire formulated with the help of existing literature and experts of industry and academia. Hotels, Himachal Pradesh, were universe of the study and the sample was drawn from these.

The results show that budget, two-way communication, corporate values, govt laws, and mutual trust are of utmost importance that can affect the purchasing practices in the sampled hotels.

Although, the study reveals various factors that affect purchasing practices in the state, but still the universe and sample size were two biggest limitations of the study.

Purchasing of food & beverage raw materials for hotels is a very new field for researchers in India. The study will form base for further exploration of this field in Indian context.