In the US "vacation" is used for time taken off of work/school and "holiday" is used to refer to specific days that everyone has off (Christmas, Easter, Thanksgiving...). In the UK "holiday" is used for both meanings.

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