There are hundreds of everyday words that are different. For example, Brits call the front of a car the bonnet, while Americans call it the hood. Americans go on vacation, while Brits go on holidays, or hols.
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The use of the term holiday instead of vacation is a long-standing tradition in Europe that dates back hundreds of years. In ancient times, the holiday season was a time when people could take a break from their daily lives and enjoy time with family, travel, and leisure activities.
In the US and most of Canada the term 'vacation' means taking earned time off from work to take a trip. In the UK, Australia, and most other English-speaking countries, people say 'holiday' to describe a going away from home for a period of leisure.
Holiday: Canadians use the term “holiday” interchangeably with “vacation.” E.g., “When are you taking your holiday this year?” “I think I might go on holiday in July.”
Vacation is used in American English. It is not used in the English of the English and other British people. The word holiday is the normal word for British people.