Aug 3 Reuters Airbnb forecast thirdquarter revenue above market estimates on Thursday, but industry fears of softening U.S. domestic demand sent the vacation rental firm39;s shares down 1.2 in afterhours trading.

The San Franciscobased company forecast quarterly revenue between 3.3 billion and 3.4 billion, ahead of analysts39; 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 crossborder 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 yearoveryear.

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.

The demand for domestic hotels has been flat in the United States as pandemic restrictions ease and a strong U.S. dollar encourages consumers to book flights and stays overseas, according to analysts.

But shortterm rental company Airbnb, which has a large presence in cities, said it saw an acceleration in the total growth of…