People go on vacations and enjoy them. But they routinely mix up several different benefits, some of which are unrelated to traveling and staying at a hotel somewhere.
Traveling to a place with something good about it (sunny beaches, museums you want to visit, etc) is one benefit of vacations.
Not working for a while is another benefit. People have more free time while on vacation. You'd still get this benefit if you took the same time off work but stayed home.
Another reason people like vacations is they spend more money. Not just on travel and the hotel, but also on food, spas, massages, entertainment and conveniences (to save time or hassle at the cost of money). They are less frugal about buying luxuries while on vacation. It's a common mistake to attribute some of the fun of this additional purchasing to travel. They could stay home but go to nice restaurants for a week and buy some other stuff they want, like they would on vacation, but without also buying a plane flight and hotel room.
I consider vacations (and travel) overrated. There are some good things about them, but try not to mentally bundle everything together. Recognize that you could do some of the stuff you do on vacation (take time off work, spend more money on your happiness for a week) without traveling, and save a lot of money, and it'd be better and more convenient in some ways. (Your home is nicer to stay in than a hotel room unless it's really expensive, and even then your home has all your stuff. And you have your car if you stay home.)