Correct spelling, explanation: the word holiday is a compound, stemming from the adjective holy and the noun day, literally referring to special religious days. It comes from Old English as hāligdæg where hālig means holy and dæg day. It clearly shows that holiday is written correctly, whereas hollyday is a misspelling.

Definition of holiday:
noun/verb, a period of time when people do not go to work or school and they can relax; a religious or national festival,
I’m so tired that I can’t wait holiday this year.
They were going to the USA for their holiday.
The 11th of November is a national holiday in Poland.

Phrases with holiday:
the holiday of a lifetime – a very good, expensive holiday that you have only once in life;
They took me on the holiday of a lifetime to Colorado Springs in the USA.
holiday pay – the salary that employees receive for holiday;
They can only get three days’ holiday pay.

Incorrect spelling, explanation: holiday is a compound, consisting of the adjective holy and the noun day. However, there is no such word as hollyday because holly is the noun, referring to a plant, for example, a tree or a shrub, with shiny evergreen leaves and red berries. Thus, only form holiday is correct, hollyday is wrong.

Incorrect spelling

Incorrect spelling