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.
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noun. /ve?'ke??n/ 1[uncountable, countable] a period of time spent traveling or resting away from home They're on vacation in Hawaii right now. You look tired—you should take a vacation.
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.