The most common and most likely answer to this crossword clue is the 5 letter word CORFU
I've seen this crossword clue in The Guardian
C
O
R
F
U
More clues leading to the result CORFU
- My fine, initially unspoiled, holiday destination?
- Greek island in which Corinthians curtailed amusement
- University dress mostly rejected in holiday island
- About four moving to find holiday destination
- 104 fancy holiday destination
- Island held by fanatic or fugitive
- Blimey! Phew! I gather summer’s hot here!
- Panic or fuss restricted in island
- Island for outcast in Copperbelt
- Popular holiday destination caught four out
Buddy explains!

The straight part
We know that "Popular holiday destination" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case popular holiday destination = corfu.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.