The Garveys arrive for the new season but run into trouble at customs when Madge's crushed tanning powder is mistaken for something illegal and Mick is held overnight. Meanwhile Kenneth, running his hair salon with Liam, accidentally starts a fire, which does not impress Clive and Tonya Dyke from Watford, who already see the Solana as a dump. They are also less than impressed by the overtures of Jacqueline and Donald, who stage a protest to insure the free holiday they were promised. Whilst the Dykes' boy Tiger leads Michael astray - including getting a tattoo - Tonya is suspicious of Clive's genuine efforts to be helpful to Janice and Kenneth has to appear in front of the hairdressers' Mafia don Herbert, who turns out to be harmless and a friend of Kenneth's mother.

Mick is released from prison and Janice grudgingly accepts a lift from Clive to go and meet him though, thanks to Donald's navigation, they end up getting lost. Michael covers his tattoo in a bandage and begs Janice not to tell his father but he and Tiger still run riot, stealing cigarettes and raiding the office whilst the Dykes' daughter Bianca arrives and is mistaken for a prostitute. Mateo is angry when Joyce employs hunky young Jason as a barman on a week's trial as he is a hit with the ladies and better at making cocktails. Les introduces Mateo to a friend who will school him to beat the younger man at a cocktails shaking contest but in the meantime Kenneth discovers that Jason is a wanted man and provides information that will remove him from the Solanas.

Martin Weedon arrives with his noisy friends for his wealthy mate Jonty's stag weekend, immediately annoying staff and the other guests. Clive and Mick make up whilst their sons steal some odd pills from the Garveys' room to help the celebrants get high as the Stewarts take the partyers out on a night to remember, especially as Jacqueline is standing in for the stripper. Madge meanwhile undoes the harmony between the Dykes and the Garveys whilst next morning Mateo discovers that Joyce is not as opposed to Jonty as she had previously claimed.

A hung-over Martin wakes up in bed with Bianca and is appalled to learn she is a minor. He is in fear of Clive but agrees to meet him and is relieved to find it is because he told Bianca he had a villa and Clive wants to know how to build his own. Kenneth panics when an elderly client appears to die under the dryer and borrows Madge's scooter to dispose of the 'corpse' - which comes back to life whilst Joyce organizes a volleyball contest where the Stewarts in their anti-gravity boots thrash Michael and Tiger, who lose their holiday money in a bet as a result. However Tonya's superb showing at the karaoke wins it back whilst Martin finally hits the jackpot at the casino, thanks to Donald's lucky penny.

Joyce takes a three day break leaving Les in charge. He is not very good, accidentally attacking Clive and being coerced by Bianca into sacking Mateo for flirting with her, though a full-scale protest with television coverage leads to his reinstatement. The Stewarts prepare to scatter the ashes of a deceased friend but the wind blows away the box, opening it to reveal what appears to be a severed head - actually Les's new wig, as the boxes got mixed up, All this determines Joyce to return to work early, with old flame Cyril, who has escaped from a Thai prison. Madge, meanwhile, is untypically nice to everybody, believing she is terminally ill, but, as she breaks the news to the Garveys a fight breaks out, due to Les's incompetence.

Now appointed assistant manager Cyril organizes an eating contest, Hombre Versus Food though Kenneth does not take part and, encouraged by Liam, goes on a health kick, not that it does him much good. Mick discovers that Madge is not terminally ill, though, when confronted, she blames the doctor for a misdiagnosis whilst Tonya persuades Janice that she needs an expensive make-over at the spa where she is a beauty therapist. Meanwhile Michael and Tiger vie for the attention of the lovely Elena and Michael is delighted when she chooses him. The eating contest goes ahead, causing mass sickness as the meat was obtained from a butcher's dumpster. Joyce prepares to resign but she is saved when Cyril does a runner.

Dominant Crystal Hennessy-Vass, the founder and chief executive of the Solana group, sweeps in, demanding that Joyce downgrade the hotel from a four to a three star, to give the impression that the guests are getting better value for money. After she has left a party of Dutch businessmen arrive and Les and Mateo, in their efforts to make them feel at home, are accused of racial stereotyping. Kenneth leaves hospital to find that Herbert has bought his salon and the Stewarts are invited by their raucous friend Queenie to the Costa Blanca Swingers Association party, where they meet former porn star Pepe De La Cruz and his wife Agnes, who turns out to be an old flame of Donald. Tiger tries to prevent Michael from seeing Elena but, impressed when Michael tricks the warring Dykes and Garveys into making up, tells him that she is waiting for him on the beach.