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Ella está de vacaciones esta semana.

Ella está de vacaciones esta semana.
She is on vacation this week.
From Lesson 313:Temporary roles (estar de)·Spanish (Latin America)

Questions & Answers about Ella está de vacaciones esta semana.

Why do we use de here instead of en for 'on vacation'?
In Spanish, the phrase estar de is commonly used to express a temporary state, condition, or activity. Just like you say estar de viaje (to be on a trip) or estar de buen humor (to be in a good mood), you use estar de vacaciones for being on vacation. Using en here would sound unnatural.
Why is vacaciones plural if the English translation uses the singular 'vacation'?
In Spanish, the word for a holiday or time off from work or school is almost exclusively used in the plural form (las vacaciones), regardless of whether you are taking a long trip or just a single day off.
Is there a reason we see both está and esta in the same sentence?
Yes, and it is a great reminder of how crucial written tildes (accents) are! está (with the accent) is the verb meaning 'is' from estar, while esta (without the accent) is the demonstrative adjective meaning 'this' in esta semana (this week).

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