The film is adapted from the successful stage version of the BBC1 series which ran at the Blackpool Winter Gardens in Lancashire, UK, during June-Oct 1976. It reuses several gags and setups from the parent show, most notably "Dear Sexy Knickers...".
During rehearsals the Lifebelle Inflatable Swimsuit overfilled with air and burst, blowing John Inman's wig off.
The brief sequence at Heathrow of the Grace Bros staff boarding their plane was the only location work the cast ever shot until "Grace & Favour" (1992).
Andrew Sachs was hired as Carlos, the Spanish manager of Costa Plonka's Don Barnardo Palace, to capitalise on his then-current fame as Manuel in "Fawlty Towers" (1975).
Although most were experienced film-actors, the cast found it odd to shoot without the feedback from a studio audience that they enjoyed whilst recording at the BBC.
Fiery revolutionary Cesar at one point tells Carlos to "Listen very carefully." This became part of the catchphrase of French Resistance leader Michelle Dubois in Jeremy Lloyd/David Croft's subsequent WWII sitcom "'Allo 'Allo!" (1982).
Penny Irving plays a character called Miss Nicholson. However, in the "Are You Being Served?" (1972) TV series, the she was called Miss Bakewell.