When answering this question, you can talk about the common steps people take when planning holidays. For example, people usually decide on a destination, set a budget, book transportation and accommodation, and make an itinerary of activities they want to do. Many people also research online, read reviews, and ask friends for recommendations. You can also mention that some people prefer to plan everything in detail, while others like to be more spontaneous. Giving examples of how you or people you know plan holidays can make your answer more natural and relatable.