Vacation dick is either
1) Dick that you get on vacation. Having sex with someone while on vacation, or sometimes used to refer to dick you get when you're on vacation from your relationship.
2) The kind of dick you only want occasionally, or can only get occasionally. Often related to fuck buddies you don't see that often, or guys whose dick is particularly big/small/curved/whatever, and you wouldn't want to fuck them every day.
1) I got so much vacation dick during my study abroad!
2) Yeah, I got my fill of vacation dick while we were fighting. Now we're back together.
3) He's totally vacation dick. He calls once every two months, we fuck, and then we say "See ya in September!"
4) He had a total vacation dick. It was so curved, he was like a banana! We could only do, like, three positions without it snapping in half. You don't want that shit all the time.