When they go to the club to watch the act ("Sisters"), Phil notices that Bob is smitten with Betty (Rosemary Clooney), while Phil has eyes for her sister, Judy (Vera-Ellen). Betty and Judy join Bob and Phil at their table, and Phil dances with Judy so that Bob and Betty can get to know each other. Phil and Judy hit it off ("The Best Things Happen While You're Dancing").
Judy and Betty head for the Columbia Inn in Pine Tree, Vermont, where they are booked to perform over the holidays. Phil gives the sisters his and Bob's sleeping-room accommodations aboard the train to Vermont.