Fawlty Towers is listed under the genres sitcom and farce. The farce label describes the show's reliance on exaggerated behaviour, rapid complications, misunderstandings and escalating disorder.
Most episodes begin with an ordinary hotel problem that spirals out of control. Basil Fawlty tries to protect the hotel's reputation or impress a supposedly important guest, but his temper, dishonesty and social anxiety create further confusion. Characters miss one another, conceal information and misinterpret events, producing the tightly layered situations typical of farce.
The series also clearly fits the sitcom category because it centres on a recurring cast and a continuing workplace setting. Basil, Sybil, Polly and Manuel return to the same hotel, where their contrasting personalities generate comic situations from episode to episode. Calling it a farce adds detail about the show's particular comic style rather than replacing its broader television format.
It is not best classified as sketch comedy, because the episodes have sustained plots and recurring characters. Nor is “variety” an appropriate genre: that term generally refers to programmes built around separate performances rather than a continuing fictional story.