The title is a play on "Daffy's in trouble".
Daffy Duck and Porky Pig work in the hotel business on the western frontier. At the start of the cartoon we see Daffy sweeping the floor, and exclaiming his dissatisfaction with his job. "Sweep. Sweep. Sweep. All day long. What a job for a grown duck with my IQ." When Porky calls Daffy over, and gives him a new broom as a present, Daffy throws his hat on the floor in disgust and quits, "A new broom? That does it! You can take your own broom and sweep your own floor! I RESIGN!"
Daffy builds his own hotel business directly across the way from Porky. Porky looks on, exclaiming all that because he gave Daffy a present. Daffy does everything he can to persuade business to his new establishment, hanging signs reading 'Free Lunch', 'Free TV', and 'Free Paid Stamps'. After Porky wishes Daffy luck, he spots a customer whom he hastily invites to his newly built establishment. Upon his arrival to the hotel, Daffy tries to take the gentleman's order, but is instead robbed.
Despite Daffy's many attempts at wooing customers with his free advertisements, Porky's establishment is receiving all the business. Daffy wonders what Porky has that he doesn't, so he wanders over to take a peek. Daffy sees a full establishment with dancing girls. "So that's his game. Well, I'll fight fire with fire." Upon this revelation, we see Daffy back at his hotel dressed up as a girl. Despite his attempt, the customers see through the phony disguise and skipping record player and throw tomatoes at him. Daffy attempts to join forces with Porky and asks him to be partners, even at one point blackmailing Porky. When Porky replies by telling Daffy he has all the business he needs, Daffy decides to declare a Western-style war on Porky, only to shoot himself with his own gun.
Daffy tries to drop a boulder off a cliff onto Porky's hotel. It backfires when the boulder misses, bounces, and crushes Daffy's hotel; his head changes to resemble a donkey, and he makes a he-haw noise. Daffy dresses up like a woman, and places explosives under the floor boards in Porky's hotel, which blow up, and Porky has struck oil.
Porky's hotel is destroyed by the oil gusher and closed, with a sign posted reading 'moved to a new location'. He has a new and improved five-star hotel, in which Daffy now works for Porky again. Porky offers Daffy the chance to 'clean up', and gives him his own office. When he opens the door to his office, several brooms and mops fall out of the closet. Daffy picks up a janitor hat and puts it on, muttering, "You know, I'll bet if he put his mind to it, he could be positively obnoxious."
- The scene where Daffy tries to make a deal with Porky over being partners at the hotel (which ends with Daffy threatening to shoot Porky and ends up shooting himself with his own gun) was cut when shown on Cartoon Network (prior to 2004), TNT and the former WB! Channel. While WB used a fake black-out after the part where Daffy tries to get the gun from his holster, TNT and Cartoon Network used a fake dissolve to the next scene (where Daffy uses a boulder to crush Porky's hotel) after Daffy says, "So, are we partners?" and Porky says, "N-n-no". As of 2004, the cartoon aired uncensored on Cartoon Network, although the channel once temporarily aired the censored version in 2012 out of sensitivity over the victims of the Sandy Hook Elementary School shooting. Boomerang currently airs the cartoon uncensored.
- Live-action footage was used when Daffy looked in and saw what was happening in Porky Pig's bar.
- The censored version that aired on Cartoon Network and TNT is an unrestored print, which has been time-compressed in the PAL format. The uncensored version that aired on the same channel (and now airs on Boomerang) is the 1997 WB dubbed version (a.k.a. the one that says "THIS VERSION 1997" on the bottom of the "That's All, Folks" ending card) print played in NTSC.
- The gag of Daffy shooting himself in the face was later reused in "Feather Finger" (1966).
TV Title Cards
- 09/23/61 Daffy's Inn Trouble LT CN Censored (Censored version as shown on Cartoon Network until 2004)