It's a new English word/idea: a combination of "stay" and "vacation".
It means a holiday at home. Not a hotel. You stay at home and enjoy doing things that are relaxing.
My Golden Week was a Staycation.
I was in and near Hiragishi for the whole five days! My only traveling was to Fujino, Miyanozawa and downtown. Not far at all.
Years ago, when I was a child, there was a TV drama called "Upstairs Downstairs" - about a rich London family and their servants. Similar to "Downton Abbey". Also I remembered that I've visited Highclere Castle which is the location of many scenes in the drama. Visiting stately homes is a popular hobby in England, people drive out at weekends to walk round a big house and the gardens, and finish the visit with a cream tea.
The rest of my holiday? Eating.....delicious edible wild plant tempura in Fujino and an expensive Japanese dinner in a secret restaurant in the hills overlooking Miyanozawa.