From bbc – keep your English up to date
These days people have less and less money to spend on luxuries, things like holidays, for example. So, when they have some time off work, some are choosing to stay at home, instead of flying or driving, perhaps to the beach or mountains, maybe to another country. It’s a staycation, combination of stay and vacation.
Particularly if you live in a big city, you might not get time to enjoy everything that it has to offer in term of entertainment – to go to the theatre, to concerts or just to go sightseeing. So staycation might be an attractive idea.
Other reasons to take a staycation may be having very young children, or perhaps you want to make some home improvements, like redecorating. In any case, a staycation will almost certainly save your money. I have some friends from the US who come over to London every year or so and stay with me – so i regularly take some time off and have a staycation. Sometimes i visit them in Seattle and they have a staycation.