A person from the UK says they will be going on 'holiday', while a person from the US says they will be going on 'vacation'. Both are talking about a trip to Rio de Janeiro.
This difference in word choice demonstrates:
A grammatical error made by one of the speakers.
A difference in the legal definition of paid time off in the UK and US.
That the two people are going on different types of trips.
A vocabulary variation between British English and American English.
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'Holiday' is the primary term for a period of leisure and travel in British English, while 'vacation' is the equivalent term in American English. They refer to the same concept. This is a well-known example of lexical variation between the two main dialects of English.
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