The sitcom was based around the San Remo hotel in Merbella. For the Christmas special, the Pearces and Cochranes upgraded to the Don Carlos Hotel.
Keith Barron pronounces his wife's name (Amy) in precisely the same accent as he pronounces the name of his wife of the same name in the film Baby Love (1968)
Although set in Spain, all episodes of the first three series were shot in studios in Leeds, with no location footage at all. However, for the 1986 Christmas special - which served as the show's finale - ITV upped the budget to film in a real hotel in Spain. This explains why the Pearces and Cochrans are not staying at the San Remo in this episode.