The surprise is on the Garveys when their surprise visit to Madge reveals that she has sold the Palace and her villa - to Cilla Black - and left no forwarding address. They book in to the Solana,where the Stewarts are also staying.With Troy at his dying father's bedside Gavin has returned with work-mate Kenneth,who never stops eating. Cross-dressing Les is the new poolside barman and his gormless young son Liam is smitten with pretty tourist Natalie,to the scorn of her sarcastic friend Sam. When Madge is finally located she reveals that Mel left her with huge debts,forcing her to sell up and move into a trailer park from which she has just been evicted as she owes rent. Janice decides she should stay at the Solana with them and the family and staff close ranks to see off Scary Mary,the park owner,when she comes to collect Madge's arrears.

Gavin learns that Troy's father has died so,to cheer him up, Kenneth takes him out for the day but,by design,ends up at a gay nudist beach where he gets chatted up by a bare hunk. Gavin is not pleased and sacks him. Madge has the chance to take over a bar - the site of Mel's former disability shop. She prays for a sign and gets one in the form of one of Mel's old thongs and agrees to go into business. Mateo accompanies Les on a double date to repay him for getting him his job back. Unfortunately Mateo has to drag up and gets arrested for importuning.Bananarama arrive for the 1980s evening and get mistaken for a tribute band as there are only two of them. Jacqueline,however,successfully makes up the trio but Liam is less successful in his persistent pursuit of Natalie.

After Donald's clothes and a suicide note are found on a beach Gavin and Kenneth help Jacqueline bid him farewell. The British consul however suspects an insurance fraud. Due to a misunderstanding at a gladiatorial theme park Janice finds herself in the arena where she defeats all-comers. Troy arrives in Benidorm,a wealthy man after his father left him several houses and four hundred thousand pounds. Pauline celebrates a successful divorce,Liam declares his appreciation of his father and Madge opens her bar,publicly thanking the Garveys for their support whilst Mateo is exposed - literally - as a cheat with a wife and children. Most of the Brits head home,except Jacqueline,who has an appointment in Morocco.