In the UK
Employee 1 - " I'll be on annual leave next week "
Employee 2- " Oh... are you going on holiday? Or staying at home?"
Employee 1 - "I'm going on Holiday. I'm going to Spain"
Or
Employee 1 - " I'll be on annual leave next week "
Employee 2- " Oh... are you going on holiday? Or staying at home"
Employee 1 - "No.. I'm not going on Holiday. I'm staying at home for a week, just relaxing"
To a School Child
Dad - "Son.. when do your Easter holidays start?"
Child - "Next Friday, Dad"
Dad - "I thought so. I've booked a holiday in Cornwall for us all"
And Mike is correct that Vacation is a US word.
I did once use the word 'Vacation' in an email to UK work colleagues, many years ago...
And everyone made jokes about it, saying I had become American overnight.
:-s