Gigi wagers that if he loses, he must take her and her grandmother to the seaside for the weekend. Gaston agrees, loses the bet, and the three travel to Trouville. While Gaston and Gigi have fun together, Honoré and Madame Alvarez unexpectedly reunite and reminisce about their once-passionate affair. As other women at the resort hold perfect poise with an air of boredom or disdain for anything unfamiliar, Gigi pulls Gaston out of his depressive rut with her carefree attitude. When Gaston goes to Monte Carlo, great-aunt Alicia and Madame Alvarez scheme to turn Gigi into Gaston's mistress. Though initially dubious, Madame Alvarez agrees to Gigi being intensively trained before Gaston's return. Gigi accepts this as pre-destined. When Gaston returns, he is discomfited when Gigi shows off her new womanly gown. Gaston insults the dress, preferring her juvenile outfits; Gigi mocks his taste in clothes. Offended, Gaston storms out, then quickly realizes his folly and returns to apologize. He offers to take Gigi to tea at the Reservoir, but Madame Alvarez interjects, telling Gaston that an unchaperoned Gigi being seen in public with him could damage her reputation. Angered, Gaston storms out again. He walks and reflects on Gigi, realizing he has developed a romantic desire for her. Although hesitant due to her young age, Gaston realizes that he loves Gigi. He wishes only to be near her—an unheard-of behavior between a man and his mistress. Despite such conventions, he proposes a generous "business arrangement" to Madame Alvarez and Aunt Alicia for Gigi to become his mistress. The women are overjoyed by his offer, though Gigi is not. Gigi refuses, telling Gaston she does not seek celebrity status, only to eventually be abandoned by him and become another man's mistress. She wants their relationship to remain platonic, but when Gaston suddenly reveals that he loves her, Gigi bursts into tears. She chastises him, saying if he truly loved her, he would never expose her to a mistress's uncertain life. Gaston leaves dejected and is angry at Madame Alvarez, claiming she only emphasized the proposition's sordidness. He then speaks with Honoré, who says that Gigi's family has always been rather odd. Gigi later sends for Gaston and tells him that she would rather be miserable with him than without him, and agrees to the arrangement. When Gaston arrives for their first social outing, he is unexpectedly entranced by the transformed Gigi's