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From temples to tourist hubs: Interim budget ushers in travel renaissance

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Mumbai: Diving into the interim budget, the tourism sector emerges as a key player, echoing the government’s strategic focus on boosting growth and employment. Industry experts share insights on the budget’s impact, ranging from temple tourism subsidies to transformative infrastructure plans.

The budget unfolds as a roadmap, signaling substantial developments in air and rail connectivity, iconic tourist spots, and initiatives to tackle over-tourism, promising a dynamic landscape for the tourism industry’s resurgence.

The following are the quotes:

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Temple Connect and International Temple Convention and Expo ITCX founder Giresh Kulkarni

Reflecting on the activities of the International Temples Convention and Expo over the past year, which successfully brought together thousands of temples, fostering improvements in areas such as enhancement, beautification, surveillance, coordination, and an overall enhancement of pilgrim and devotee management systems, we present a noteworthy recommendation to the esteemed office of the Finance Minister. The comprehensive engagement with the temple ecosystem, encompassing industries related to temple devotion, spirituality, and cultural aspects, underscores the necessity for increased subsidy benefits.

As we approach the upcoming times, it becomes imperative to uplift existing temple infrastructure through diverse avenues. Notably, the influx of international travelers to India, seeking pilgrimage or visiting temple premises, significantly contributes to the local temple economy through substantial financial spending. Therefore, the current budget prominently emphasizes support for temple tourism, general tourism, and spiritual tourism. In this interim budget, we also advocate for the backing of both corridor-centric and non-corridor-centric temples through the Smart Temples Mission, initiated by Temple Connect.

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Looking ahead, the International Temples Convention and Expo anticipate the participation of over 5000 temples under one roof, marking a significant step towards the Smart Temples Mission. This concerted effort is poised to have a profound impact on local economies, fostering entrepreneurship and benefiting sectors related to devotion and spirituality. Simultaneously, this initiative aims to transition commercially active taxpayers from the current non-tax-paying category to encouraging their participation in the tax-paying category, contributing to the economic growth of the temple ecosystem.

Thomas Cook (India) Ltd executive chairman Madhavan Menon

The interim budget presented by the finance minister has focussed on tourism with a multipronged approach that we believe will create a multiplier effect across aviation, tourism and allied sectors, boosting growth and employment generation.

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We welcome the announcements on airport development and expansion: having already doubled to 149 airports in the last decade, the government’s plans to boost air connectivity by the addition of 517 new routes across Tier 2-3 cities, carrying 1.3 crore passengers via the UDAN scheme, will play a critical role with vibrant hub and spoke air corridors to boost accessibility-affordability for regional India.

Implementation of major rail connectivity corridors via the PM Gati Shakti program together with port and metro/rapid transport expansion will serve to create valuable multi-modal connectivity for tourism.

We welcome the special focus on domestic tourism which represents a vibrant growth driver via the government’s plan of long-term interest-free loans to states; development of iconic tourism centres by states along with marketing on global standards. What was noteworthy is the reference to Spiritual Tourism and projects for port connectivity, tourism infrastructure and amenities on islands including Lakshadweep – aimed at development of India’s hidden gems and employment opportunities.

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Further, the strong capex outlay of Rs 11.11 lakh cr, a significant four per cent of our GDP, will serve as a catalyst to the Country’s growth potential and job creation.

SOTC Travel Ltd MD Vishal Suri

The interim budget presented by the finance minister has maintained status-quo on direct and indirect taxes thus keeping its impact neutral. The government has set focus on the overall travel and tourism sector via infrastructure development, green energy, sustainability and looked at diverse initiatives for domestic tourism via a strategic approach for each segment – aviation, ports (waterways) and rail to strengthen regional connectivity to tier 2 and 3 cities.

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We welcome the development on the rapid expansion of air connectivity with the addition of 517 new routes across regional India’s tier 2 and 3 cities via the UDAN scheme – this will play a key role in strengthening accessibility.

The special focus on strengthening domestic tourism via implementation of rail connectivity corridors under the PM Gati Shakti initiative and upgrading 40,000 regular train boogies into high-speed Vande Bharat trains will definitely strengthen surface transportation.

The government’s plan on focus on spiritual tourism, development of iconic tourist spots and island destinations of India including Lakshadweep (projects for port connectivity, tourism infrastructure, and amenities) will generate employment thus boosting India’s economy. What is noteworthy, is the government’s mindful move to form a panel to tackle challenges of higher population/over-tourism, especially in destinations with sensitive ecosystems.

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E-Factor Experiences Ltd MD Samit Garg

The focus on tourism, including the development of iconic tourist centres and the promotion of the Blue Economy, can lead to more opportunities for cultural events, festivals, and experiential tourism initiatives. This could open new avenues for event managers to explore and innovate in thematic and destination events.

 

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Digital

GUEST COLUMN: How AI is restructuring distributor and retailer motivation models

From incentives to intelligence, AI is redefining how brands engage channel partners

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MUMBAI: Artificial intelligence is rapidly transforming how brands engage with their most critical yet often overlooked stakeholders: distributors, retailers, and last-mile influencers. For Abhinav Jain, co-founder and CEO of Almonds Ai, this shift marks a fundamental departure from traditional, transaction-led incentive models toward behaviour-driven, data-intelligent ecosystems. In this piece, Jain examines how AI is enabling brands to decode partner motivations, predict engagement patterns, and deliver personalised, scalable experiences—ultimately redefining channel relationships from transactional exchanges to long-term growth partnerships.

Across many sectors, there is increasing recognition that motivating those who bring products to market (distributors, retailers, last-mile influencers) poses a growing challenge.

Brands continue to invest significant marketing and digital resources to consumers, yet in many countries and the vast majority of emerging economies, these types of consumer-focused investment areas have had little impact on ultimate product delivery. Rather, it is still the case that traditional retail continues to make up most products sold.

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So why is it that the systems built around motivating these channels have yet to evolve?

For decades, distributor and retailer engagement revolved around static schemes – quarterly targets, volume-based rewards, and occasional trade promotions. These programs were designed around transactions, not behaviour. The assumption was simple: if incentives increase, performance will follow.

Now, with the advent of artificial intelligence, the definition of performance is being challenged.

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With the development of artificial intelligence, businesses can move beyond simply creating loyalty based on transactional-based models and toward models built on behaviours, the behaviours of channel partners that are intrinsic to their motivations in engaging with particular brands. As a result, the means by which businesses develop relationships within their distribution network are starting to evolve; thus, ultimately changing how brands interact with those within their distribution network.

Assessing engagement: Transitioning from transactional- to behavioural intelligence

Traditional loyalty systems refer to transactional activity (sales data). Although this data is valuable and important, it only provides a partial view of engagement across the channel partner.

For example, a retailer may have a high frequency of sales of a product, but their lack of engagement with the manufacturer would not reflect that they have true loyalty toward that brand. Conversely, a retailer who actively participates in training programmes, acts as brand advocates, and is engaged in learning with the supplier would exhibit more profound levels of loyalty but would have been invisible based on historical incentive programmes.

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Artificial intelligence allows for the identification of behaviours that help to address this gap. Brands are able to use a variety of engagement data points, participate in learning programs, respond to communications, redeem behaviour and track platform use behaviour in order to identify motivation through behaviour.

McKinsey has stated that companies that leverage advanced analytics for their sales and distribution functions can achieve as much as a 15-20 per cent increase in productivity due to increased awareness of their behavioural trends throughout their networks.

This visibility of behavioural patterns within channel ecosystems can be transformational to brands as they can now view how partners engage on their path to purchasing products, instead of just measuring the sales revenue generated by those purchases.

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Predicting motivations, not just measuring performance

Possibly, the largest contribution of Artificial Intelligence (AI) to helping brands engage with partners via channel ecosystems is its ability to predict future engagement versus simply measuring past performance.

Traditionally, brands only realised that a partner was disengaged (not likely to purchase products) once their sales performance had already declined. By then, the brand would have to use significant amounts of incentives or aggressive promotional activities to recovery their partner’s engagement level.

AI models can help organisations to detect early signs that a partner is becoming disengaged, such as declining participation in learning modules, declining interaction via the platform, or slower reward redemption rates. These indicators can help organisations to proactively engage with their partners before their sales performance begins to decline.

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The practical application of AI and predictive analytics gives brands the ability to re-engage with their partners prior to their sales performance declines. For example, instead of developing and implementing broad-reaching incentive programs that provide a “one size fits all” incentive to all partners in an ecosystem, brands are able to develop targeted, engaging re-engagement programmes. This is how personalisation can be done on a large scale, such as across global distribution and retail networks.

The vast majority of distributor and retailer channels have thousands, if not millions, of individual channel partners. Historically, providing personalisation to such a large number of businesses has not been feasible.

However, with the advent of AI, personalisation at scale is becoming a reality.

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Brands can now create tailored engagement journeys for all their partners, based on their partner profiles, through some combination of machine learning models and behavioural segmentation. For example, high-performing distributors might receive higher levels of leadership-based recognition and greater incentives to continue to grow. Emerging retailers, on the other hand, might be supported with training, onboarding rewards, and measurable performance milestones.

The shift towards personalisation of partner engagement echoes the direction that consumer marketing is already moving towards.

According to Salesforce’s report, over 70 per cent of customers expect personalisation in the way that brands engage with them. As such, there is a growing expectation for B2B ecosystems to have these same types of expectations from their channel partners.

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Gamification and continuous engagement

AI is also radically changing how brands will engage with their channel partners through the use of gamification.

Many traditional incentive-based contests and leaderboards would spark temporary engagement among their participants, but they struggled to sustain engagement over time. With the use of AI, gamification mechanics are evolving dynamically based on historical and evolving participation patterns by their channel partners.

Challenges, rewards, and recognition structures can be modified continuously in order to sustain engagement with all of a brand’s partner segments. This will provide a greater opportunity to move away from episodic campaigns towards ongoing, continuous engagement experiences.

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When channel partners receive motivation as part of their daily business activities through recognition, learning, and tracking their performance, long-term loyalty will be achieved.

Aligning motivation to broader impact

There is a growing trend within the channel ecosystem to integrate sustainability and socially responsible behaviours into the channel partner programmes of brands.

Increasingly, brands are motivating their partners to use sustainable practices in their operations, participate in sustainable practices like sustainability-related knowledge programmes, or promote products that are in line with their sustainability objectives.

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Brands can use AI to monitor and measure these types of behaviours and incorporate them into their incentive frameworks so that brands can align their commercial objectives with broader social and environmental outcomes.

A shift in the way brands view their channel partners

AI is having the most significant impact on the way that brands are now viewing their channel partners, as it relates to the underlying philosophy of those fundamental relationships.

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For the past several decades, many brands have viewed their channel partners as intermediaries in the supply chain. More and more brands are now beginning to view their channel partners as key ‘partners-in-growth,’ and their actions can have a direct impact on market performance.

In fact, all the channel ecosystems are using behavioural engagement platforms to design new models that reward not just transactional behaviour, but also create continuous engagement journeys for their partners, where their partners can receive recognition for their participation, learning, and continued engagement, thereby reinforcing long-term loyalty to the brand.

The future: Intelligent channel ecosystems

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As we consider what the next phase of channel engagement may look like, many believe that it will be based on intelligent ecosystems, using AI to continuously monitor and adjust the engagement strategies used to engage their channel partners, in real time and based on the behaviours of those partners.

For brands operating in complex distribution networks, the ability to perform well will be determined both by whether products are available to their customers, as well as by the enthusiasm, expertise, and loyalty shown from each channel partner that represents the brand each and every day that they are working on behalf of the brand.

While AI clearly does not eliminate the human aspect of a brand’s relationship with its channel partners, it does allow brands to better understand and nurture that relationship.

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In markets where the last mile will determine whether a sale is made, how one leverages the intelligence gained by using AI will ultimately be the difference between gaining a new, sustainable competitive advantage versus losing one.

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