In the United States, --a "holiday" usually means "a day when you don't have to work," and --a "vacation" usually means "a trip, away from home, for pleasure." If your job only requires you to work, say, 49 weeks a year, the other three weeks are called "vacation time." Thus: "Do you get Columbus Day as a holiday?" "Yes, we do, so we'll have a three-day weekend." "Are you going to do anything special?" "Yes, we're going to take a short vacation in Vermont and look at the fall foliage."

Holiday is used for special events/ national events, so all people in your country know about it. Ex: as a student, I am enjoying my summer holiday. Vacation is used for your personal purpose. Ex: I took 2 weeks off from work to have a vacation in Bali, Indonesia.

Vacation mean taking a break. Or Holliday like Christmas or thanks giving

"Vacation" and "holiday" are used in very similar ways. In American English, a long period of time off is usually called a vacation. EX: I am on a two month summer vacation. In British English, I believe they call this a holiday. EX: I am on a two month summer holiday. In America, "holidays" are days of celebration (like Halloween or Christmas) and don't always mean time off from work or school. You can say, "I am taking three days vacation around the Thanksgiving Holiday."

Vacation is when you go somewhere while taking a break from work or school, whereas a holiday is where you take time off because of special days and events for example Easter, Christmas, summer e.t.c. It does depend where you go tho because in the UK the word vacation is rarely used, so most people will say holiday for both, whereas in Canada and the USA, they will make the distinction.