A too good to be true, inexpensive vacation to "Near" Mexico, proves to be just so when the girls get a room with a wall missing. Plus many other deceptive practices foisted on them and other guests by the hotel's deceitful owner.

A visit to a local beatnik coffeehouse does not impress Laverne much, but Shirley's enamored of the culture and soon is dressing, speaking, and acting like a beatnik herself. Can Laverne sway her friend back from the lure of the beat scene?