Ageing swingers Donald and Jacqueline Stewart return to the Hotel Solanas in Benidorm for another holiday. New guests this year are middle-aged virgin Geoffrey, who calls himself the Oracle because of his quiz general knowledge, with his mother - or P.A. as he terms her - gay couple Gavin and Troy, young marrieds Kate and Martin who have been going through a sticky patch, and the Garvey family. Lazy Mick and his long-suffering wife Janice have a lippy teen-aged daughter Chantelle and inquisitive little son, Michael. Janice's sun-burnt, chain-smoking mother Madge, who rides around on a mobility scooter has paid for the holiday for them all. Janey York is the jolly if half-hearted holiday rep and then there is Mateo, a sexy young waiter with an eye for the ladies. . . Kate in particular.

It's karaoke night at the hotel bar and the Oracle and his mother perform a duet, but that's not the reason Chantelle Garvey faints. When her mother finally opens up the pink coat Chantelle has refused to shed despite the Spanish heat, it is revealed that she is very pregnant.

Kelly, an English girl who works at the hotel, tells her friends Donald and Jacqueline that she is engaged to Mateo. This, however, is not enough to stop Mateo from making a pass at Kate and having sex with her, though she later admits that she was too drunk to remember anything about it. Janice, meanwhile, reconciles herself to becoming a grandmother.

Due to a misunderstanding Donald and Jacqueline assume that Madge is up for group sex with them and she gets a shock when she answers an invitation to go to their room. They have a lot of apologizing to do. So does Troy, who gets drunk and ends up having sex with Mateo, which Gavin observes. Janice believes that her husband is planning to get off with Susie, a single woman who is following him around.

The Oracle is outraged that a quiz veteran like himself is beaten , more by luck than judgment, by the Garveys in the pub quiz and demands a recount though he doesn't get one. Kate is annoyed that Madge , in whom she has confided about her difficulty in conceiving, has broken her trust whilst Donald reassures Gavin that Troy still loves him.

Having stayed within the complex for all of the holiday because everything is inclusive, Mick is horrified when his family drag him off to the beach and he is forced to pay the extortionate prices. Worse is to befall him, however, when the girl Janice thought was after him turns out to be a D.S.S inspector who ends up prosecuting him for claiming he is unable to work but going on holiday. The Oracle also decides that he will never go on holiday with his mum again, but Martin is pleased at his wife's fling with Mateo, feeling that it has spiced up their lives.