Despite rising costs, business travel is robust, according to an analysis of travel volume and spending by more than 10,000 organizations comprising millions of air, hotel and other expense transactions.
Navan, an expense management platform, commissioned Forrester Research to create an index tracking such activity. The index is pegged to a baseline of 100, established for the first quarter of 2023.
According to Navan’s recently released report on its clients’ travel activity in the third quarter of 2025, the Navan Business Travel Index reached 178.4, reflecting an increase of more than 78% in less than two years.
Year over year, compared to the reading of 148.7 for the third quarter of 2024, the index gained 20% over the previous 12 months.
The strong growth in business travel is particularly noteworthy in that a U.S. Transportation Security Administration index of overall travel volume rose just 0.6% in the recent third quarter from the year-earlier period.
Most industries contributed to the year-over-year growth in business air and hotel spending and volume, led by the government and public sector, which saw a 28% gain, followed by financial services at 24%.
The cost of airline tickets in premium cabins (business class and first class) shot up 36.2% domestically and 12.7% internationally.
Expense categories other than air and hotel were up significantly in the 2025 third quarter, including 19.8% for taxis and rideshares, 19.7% for public transport, tolls and parking, and 13.2% for personal meals.
The only such category to decline was client entertainment, for which spending and volume were down 0.8%. However, the average per-transaction spend in this category increased 8.9%, “suggesting that companies may be investing more in fewer, bigger-ticket events,” Navan’s report said. That jibes with other recent research showing many companies consolidating business trips as much as possible.
Meanwhile, Navan released a second report offering a five-step plan for finance managers to optimize their travel-and-entertainment activity:
1. Implement AI and automation. Advanced technologies can speed up and reduce errors in common finance practices like reporting and approvals, enabling finance teams to focus on higher-value tasks.
2. Keep policies simple and updated. “When T&E policies are convoluted or outdated, the result can be confusion and accidental violations that waste time and money,” Navan wrote.
3. Integrate other software solutions. The more connections a company can make with T&E software and other financial tools, Navan said, the more efficient its teams will be. Integrating accounting, ERP, payroll and credit card systems helps finance share accurate data in real time.
4. Leverage key data analytics. The most powerful insights from data analysis are enabled by real-time data. Navan noted that in a recent survey, this was the No. 1 desired feature travel and finance managers wanted in an expense management solution.
5. Set approvals and budget controls. “Establishing an approvals process for business travel can promote alignment around a trip’s purpose and budget limits, which helps prevent confusion and overspending,” Navan wrote.
