Booking(BKNG.US) shares fell more than 7% after hours! The Q2 performance was solid, but the Q3 guidance was weak.

Booking Holdings(BKNG.US), an online travel company, reported disappointing Q3 guidance despite its solid Q2 performance, which was largely in line with analysts' expectations. Shares of the company fell nearly 7% after-hours as of the close of trading Thursday.

The company reported Q2 total revenue of $5,859 million, up 7% YoY, beating the average analyst estimate of $5,768 million; net income of $1,521 million, up 18%; and adjusted earnings per share of $41.90, up 11%, beating the average analyst estimate of $38.20.

Q2 room nights grew 7%; total travel bookings, including taxes, were $41.4 billion, up 4%, below the 4.18 billion expected by analysts.

Booking CFO Ewout Steenbergen said on the earnings call that the company expects Q3 room nights to grow 3% to 5%, attributing the "modest deceleration" to the European travel market. The growth forecast is below the average analyst estimate of 6.6%. The company also said it expects total travel bookings to grow 2% to 4% YoY in Q3, due to lower airfare prices, which is also below the average analyst estimate of 6.9%.

Despite Booking's solid Q2 performance, its Q3 guidance could rekindle concerns about a broader slowdown in consumer spending. In fact, there have been signs of a broader slowdown in travel spending ahead of the holiday season. In a July 23 report, J.P. Morgan analysts noted that Q2 web traffic to online travel sites, including Booking and its peers Expedia(EXPE.US) and Airbnb(ABNB.US), fell 3% YoY and further declined in July. Expedia and Airbnb's earnings calls next week are expected to provide more clues about the state of the travel market.