Airbnb forecasts upbeat revenue as international travel rebounds

Airbnb (ABNB.O) forecast third-quarter revenue above market estimates on Thursday, but industry fears of softening U.S. domestic demand sent the vacation rental firm’s shares down 1.2% in after-hours trading.

The San Francisco-based company forecast quarterly revenue between $3.3 billion and $3.4 billion, ahead of analysts’ average estimate of $3.22 billion, according to Refinitiv data.

The company expects to gain from a rebound in urban and international travel but firms with significant U.S. exposure are losing domestic business as more consumers opt for vacations abroad.

Airbnb, which receives a majority of its revenue from outside the United States, said global cross-border bookings rose 16% in the second quarter from a year earlier and more guests were returning to cities, with urban nights booked increasing by 13% year-over-year.

“We continue to see signs of travelers returning to cities, historically one of the strongest areas of our business,” the company said.

However, its average daily rate (ADR) globally rose just 1% to $166, as the company said it was looking to moderate price hikes for consumers. Daily rates in North America decreased 1%.

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