Your timeout percentage doesnt increase if you activate vacation time. Only if you actually go down to 0 seconds in one of your games. If you have more vacation time than you'll ever need, then why not activate it?
Something's not right
I'm confused. If the auto-vacation did not kick in then you would have lost those games when you timed out. And thus your time out percent would have risen.

Your timeout percentage doesnt increase if you activate vacation time. Only if you actually go down to 0 seconds in one of your games. If you have more vacation time than you'll ever need, then why not activate it?
Let me see if I have this correct. My vaca time doesn't affect my timeout percentage, right? My time out percentage is calulated on how many or how often my games go down to 0 seconds left. guess I'll have to check out chess.com despriction of timeout percentage. Seems like it's taken me a year to drop from 15% to 10%. I never thought I had many games that went to 0 seconds since I'm on here every day.

The "0 seconds left" thing makes things sound more complicated than they are, I think. It's a simple question of how many of your total games you have lost by time-out (expressed as a percentage). Vacation doesn't matter except that it helps you to NOT time-out. :)
You've timed out 15 times in 145 games, which is about 10.3%.

Please correct me if I'm wrong but the more games I play without timing out the faster my % will go down. Well I have played almost 350 greeter games in the last 6 months and I don't think it has put a dent in my timeout %. If these games don't count then they should if nothing else then a small reward for being a greeter. My timeout % went up last year when my computer crashed and had to be taken in. so timeout % is not just a sign of a lazy or slow player.

Timeout % isn't always to do with being slow or lazy, you're right. (This is why premium members get auto-timeout; in case something like this happens.) Greeter games do not count, I'm afraid, as they are unrated.

Only rated games count for your timeout percentage, I think . . . please feel free to correct me, anyone who knows better. Since greeter games are non-rated, they do not count for ratings or timeout percentage

Note to gods of chess.com;
Timeout % is redundant. If you time out you lose, isn't that enough
Greeter games should count for something such as knocking a few points off ones timeout % or something similiar. Maybe we could start with a little greeter icon by our name. it doesn't take much to make me happy
Timeout % is not redundant. I like to know when I start a tourney that there is a decent chance the players I am playing against will finish their games. I don't want to waste my time playing someone with a 50% timeout ratio.

If you want to use an extreme example then I would have to agree. But it is redunant since its another elimination thru the use of time constraints. I've read numerous posts by players whose computers crashed on them and thru no fault of their own ended up with high time out %. If nothing else at least raise the % for most tournys or perhaps we could have a wider range of % requirements in tournys. why have 90% of tournys with 9% or less.
I have taken a couple weeks of vacation this last year. My timeout percentage went to 15% which meant I couldn't join 90%of the tournaments. Now I've become a diamond member with more vacation time then I'll ever use. Last month when I had to leave for a few weeks for a family emergency I decided to not take vacation time so as to lower my timeout % below 10% so I could join more tournaments. But being a diamond member my games are paused automatically. so what do I do. I'm damned if I do and damned if I don't. why penalize people who use legimate vacation time. I realise I can create my own tournys but that gets old fast.