The concept is not new, but the first time I had heard the word “staycation” was last month. One of my sisters brought up the word and I think the other confirmed that it was indeed in the latest edition of Merriam-Webster’s Collegiate Dictionary.
I’m skeptical about how much staying power this word may have, but a glance at the newly added words does reveal some interesting trends. I wonder what words have fallen out of favor and have been removed.
first teacher 
I had heard "staycation" was added to the list, but thanks for providing a link to said list! I might put it on my blog, too.
Funny that earmark and missalette just made the list.
Yes, I too just heard of "staycation" last month as I was preparing for my real vacation!! I don't care for it at all…..