Regional meanings

As a trip

Vacation, in English-speaking North America, describes recreational travel, such as a short pleasure trip, or a journey abroad. Most of the rest of the English-speaking world says holiday, rather than vacation. Americans, especially those of recent British or European descent, may also say, going on holiday. People in Commonwealth countries also use the phrase, going on leave.
Canadians often use vacation and holiday interchangeably referring to a trip away from home or time off work. In Australia, the term can refer to a vacation or a public holiday.

As an observance

In all of the English-speaking world, including North America, holiday may refer to a day set aside by a nation or culture (in some cases, multiple nations and cultures) for commemoration, celebration, or other observance. Schools, business, and workplaces often close for holidays.