Airbnb Inc forecast that holiday-quarter revenue could fall short of market expectations, saying a strong dollar had begun to weigh on its business and bookings would slow, sending its shares down 7% after the open.

The San Francisco-based vacation rental company reported third-quarter profit and revenue that beat expectations.
But growth slowed to 29% in the July-September period, down from 58% in the second quarter and 67% a year ago, when COVID-19 cases fell and people working remotely booked long-term accommodation.

Shares of Airbnb have fallen by more than a third this year, compared with a roughly 19% decline in the broader market.

CEO Brian Chesky tried to allay concerns about the call, saying the company expects “strong demand” next year, especially from European tourists from the United States.

Airbnb’s fourth-quarter revenue forecast was between $1.80 billion and $1.88 billion, compared with analysts’ expectations of $1.85 billion, Refinitiv data showed.