By Sanjana Shivdas

(Reuters] -Booking Holdings Inc surpassed market expectations for its quarterly profit and revenues on Wednesday. However, the company said that a COVID-19 resurgence within Europe has created uncertainty regarding year-end demand.

Third quarter: The rebound in leisure travel, and United States decision to allow fully immunized international tourists to enter the country from Nov. 8, helped the company.

As gross travel bookings grew 77% to $23.7B, its shares rose 3.7% during extended trading. The number of rooms occupied at any property increased 44%.

Kayak’s owner and online travel agent said that a spike in COVID-19 incidences in Russia, Italy, Germany and Russia had caused room night problems in Europe in October.

On an earnings call, David Goulden, Chief Financial Officer, stated that “Looking ahead to November and December…the rising case count across many important Western European Countries and much of Eastern Europe…creates unpredictability.”

According to it, trends are improving in Asia because of higher vaccination rates and less restrictive travel regulations.

Additionally, gross bookings have been higher for Christmas and New Year in the United States than they were prior to the pandemic.

The third quarter’s total revenue increased 77%, to $4.68 Billion. This was higher than the $4.30 billion forecast.

Refintiv data shows that the company’s adjusted earnings were $37.70/share, which is lower than analysts’ average of $32.9.