If we take an "average" 9-5, Monday to Friday job, thats 227 days a year at work. 63% of their adult lives. 50% of each day they are awake, or 33% of their day total. Many people work more than that, or within those days work far more hours.
I would say most people do not enjoy their jobs. They tolerate them because of how our society and financial system is geared towards continuous growth and consumption and if we don't work as much as we can, we can't afford to live.
The problem is we aren't drones, with our singular purpose being to produce for the hive, and to work as we do can be seen as unnatural, which is why our modern lifestyles tend to play such havoc with both our physical and mental health.
As a result, I would argue that "holidays" are indeed essential, in some capacity with the way we live now. The issue you seem to have is what form those holidays take. We're planning to go Camping for a few days in June, followed by hopefully a week at the seaside in September after all the kids go back to school. We're lucky that those kind of holidays are enough to recharge us and give us a break. Other people want to feel the sun, or feel pampered, or take a break from the monotony of daily home life aswell as work, which is perfectly fine aswell. Everyone's idea of what they need to recharge is valid. When I was in my early 20's, I would save my holidays for when the big new Xbox games would release, take a week off and spend all week having marathon gaming sessions, drinking and just having a good time. Most people reading this would be mortified at the idea of it, but it was perfect for me at that time.
You also can't expect society to regress either quickly or easily, although I think with the climate emergency becoming more prominent it may end up having to happen, such as reductions of foreign travel. People are used to having the world much more open to them. You can't expect people who are used to spending two weeks a year in Italy to suddenly be happy with having to go to a seaside town at home, no more than I can expect my Mum, who has been to Great Yarmouth every year since childhood, to suddenly find the appeal of going on a Danube river cruise.
This is all before you take into account the people who wish to/need to travel to see family abroad. We were lucky that we were able to get across to my partners country last August during the easing of restrictions, but many others did not take the chance and have not seen family or friends for well over a year. Sure, many people in the UK have not seen family for the same length of time, but there is light at the end of that tunnel. We were hoping to go to my partners country in September as its a landmark birthday for her, but even that seems unlikely at this point. Whilst visiting family is a break, I wouldn't class it as a holiday, no more than I would class going up to my Dads for the weekend a weekend getaway.