Airbnb shares fell by about 12% following the company’s announcement of weaker-than-expected third-quarter revenue forecasts and a decline in second-quarter profit. The vacation rental giant flagged diminishing demand from US customers as a key concern.

In the second quarter, Airbnb reported a profit of $555 million, down from $650 million in the same period last year. The San Francisco-based company anticipates third-quarter revenue to be between $3.67 billion and $3.73 billion, falling short of Wall Street’s estimate of $3.84 billion, according to data from the London Stock Exchange Group.

The decline in domestic travel within the United States has been noticeable since the beginning of the year, with Americans becoming more cautious about travel expenditure amid rising economic uncertainty. This trend has significantly affected Airbnb, which noted a moderation in growth for nights booked and shorter booking lead times globally.

Booking lead time, a critical metric in the travel industry, indicates the number of days between a reservation and the actual travel date. A reduction in this window suggests that consumers are making last-minute travel bookings, reflecting increased caution and uncertainty in spending.

Airbnb’s challenges are not unique. Earlier this month, travel reservations provider Booking.com also reported a reduction in lead times during the second quarter, with expectations of further declines in the third quarter.

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Airbnb shares tumble 12% amid weakening US demand and lower profit