Tim has noticed that the Goodies' relationship is not the best lately. Graeme and Bill are short-tempered, overworked, and ignore him when he tries to talk to them. They do not do anything together anymore either, except have rows. Tim decides a holiday is the answer and books them all for a 3-week stay at a bungalow by the seaside at Dunsquabblin.
Unfortunately the bungalow is ramshackle, poorly designed (the bathroom fittings are all wrong – the toilet is halfway up the wall – and the whole arrangement goes into shakes and loud noises when the toilet is flushed), and leaky (it does not keep out the rain, which does not stop for 17 days). There is also a total ban on any form of music or loud noise (so as not to disturb the sheep) and other rules that further limit what the Goodies can do to entertain themselves. The irate Bill tears down the rules notice – only to find there is a £250 penalty for doing so, and he hastily puts the notice back.
Bad weather (nonstop rain for 17 days and then snow starts) that keeps them confined to the bungalow and severe restrictions on what they are allowed to do cause boredom, discomfort and stir-craziness to set in very quickly. Tim, determined that they have a holiday in spite of everything, does his best to chivvy them along. The Goodies try to occupy themselves with making cups of tea (doing it without gadgets is fascinating for Graeme), card games, indoor bird watching for Bill (with rubber ducks and bird impersonations), painting a seaside scene inside the cupboard (which gets ruined by the rain), and attempts at relaxation that fail because they have become too tense about their situation.
Then Tim's remark about the "good old days" gives Bill an inspiration – dedicate their last night at the bungalow to a musical evening as they used to do in the good old days. So the Goodies set up a Victorian-style musical evening – with Bill dressed as Queen Victoria. Tim starts "I Do Like to be Beside the Seaside", with Graeme and Bill playing improvised instruments made out of utensils they have found in the bungalow. The musical evening flouts all the bungalow's rules on noise restrictions for the sake of the sheep – which Tim takes great delight in shooting.
The song gets even louder when the Goodies turn to a rock rendition of it, which is accompanied by the smashing of instruments and the bungalow. By the time they have finished their musical evening, Tim has enjoyed it so much that he declares it is the best holiday he has ever had.