why do Brits and Aussies go on holiday, and Americans go on vacation?

holiday

chiefly Brit.

• noun - an extended period of recreation, especially away from home.

http://www.askoxford.com/concise_oed/holiday?view=uk

(American) - A day free from work that one may spend at leisure, especially a day on which custom or the law dictates a halting of general business activity to commemorate or celebrate a particular event.

Chiefly British - A vacation. Often used in the phrase on holiday.

http://education.yahoo.com/reference/dictionary/entry/holiday

UK - informal: holidays ,

US - vacation

http://dictionary.cambridge.org/define.asp?key=37531&dict=CALD

In US, holiday refers to only one day.
 
There is no other meaning to vacation that I'm aware of. Both words mean the same thing these days. Holiday, of course, came from holy day. Vacation comes from vacate.
I imagine that before the US revolution, very few people "took a vacation" in the modern sense. So the terms evolved independently.
 
well holidays are supposed to be a break. It's like why do brits call cigarettes fags? it's just the way the speak and they may wonder why americans call them butts.

the deffinition of holiday:

–noun 1. a day fixed by law or custom on which ordinary business is suspended in commemoration of some event or in honor of some person.
2. any day of exemption from work (distinguished from working day ).
3. a time or period of exemption from any requirement, duty, assessment, etc.: New businesses may be granted a one-year tax holiday.
4. a religious feast day; holy day, esp. any of several usually commemorative holy days observed in Judaism.
5. Sometimes, holidays. Chiefly British. a period of cessation from work or one of recreation; vacation.
6. an unintentional gap left on a plated, coated, or painted surface.

–adjective 7. of or pertaining to a festival; festive; joyous: a holiday mood.
8. suitable for a holiday: holiday attire.

–verb (used without object) 9. Chiefly British. to vacation: to holiday at the seaside.


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Origin:
bef. 950; ME; OE haligdæg. See holy, day


Synonyms:
2. vacation, break.
 
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