Despite occasionally producing a few "prestige" pictures, Universal Studios was something of a second tier movie studio (much like R-K-O Pictures). Once the Laemmle family lost Universal to creditors who foreclosed on their studio, the new management focused on profitable "B" programmers and inexpensive comedies and Westerns.

Robert Siodmak made the most of his opportunities filming on existing sets (the same mansion exterior was used in "The Mummy's Tomb" and "Son of Dracula") while using many contract players and character actors. The Midnight Mass sequence was filmed at the former Cathedral of Saint Vibiana, which was once the Catholic cathedral for all of Los Angeles.

"Christmas Holiday" looks much better than its budget would suggest.