Benidorm regulars for twenty years Jacqueline and Donald are middle-aged swingers who rarely leave the hotel. Known as ‘The Oracle’ because of his knowledge of trivial facts, Geoff Maltby is on holiday with his mother, but keen to hide the fact. Gavin and Troy are on their first break away together after setting up a successful salon. Kate and Martin’s marriage is at breaking point after only one night in the resort. Then there are The Garveys; a family who are on their first holiday abroad. Janice and Mick arrive with her mother – the sun-worshipping, chain-smoking Madge.

All the regulars are concerned about Telle’s pregnancy, except Madge who thinks she’s just done it to ruin her holiday. Kate and Martin have a disastrous trip out around Benidorm where they get constantly lost and eventually seek refuge in a bar for a quiet drink. The evenings entertainment at Neptune’s is supplied by a blacked up tribute act to the American south called ‘Mal’ Jolson which leaves Gavin and Troy open mouthed. They are also shocked to hear about a sexy magic act called Sticky Vicky…

It’s changeover day at the Solana “all inclusive” resort and we get to meet our cast. Everyone comes together for dinner and an evening of “quality” entertainment and Karaoke at Neptune’s bar ..but Telle (still wearing her coat ) brings the evening to a premature close when she collapses doing a Karaoke number and Janice finds out she is pregnant.

Kelly (a pretty member of the Solana staff) tells Donald and Jacqueline that she is engaged to the sexy waiter Mateo. Donald and Jacqueline try to hide their worries on her behalf. Mateo flirts with Kate who is clearly flattered by his attention. Martin returns to the sun beds to find Kate gone. She returns flustered and, for once, surprisingly upbeat about the resort. Mistaken by Kate’s apparent change in mood Martin gives her a necklace. Overcome by guilt Kate rushes out of Neptune’s. Mateo follows her and drama ensues…

During a conversation with Donald and Jacqueline, Madge unwittingly gives them the impression that she is a swinger. Martin is an upbeat mood. He talks about the sensational sex he and Kate had last night - embarrassed Kate says she doesn’t remember… Suzie leaves the club and Janice (seeing no sign of Mick) follows her as she’s convinced they are up to something.

There’s a pub quiz with a big cash prize. Michael keeps going on about going to the beach but Mick doesn’t want to as it would involve shelling out money. Mick eventually says (knowing they haven’t a hope in hell) that if they win the quiz they’ll go.