Happy Holidys is an alternative, more generic greeting to Merry Christmas and is more encompassing for the different cultures and people of the world.
Holiday greetings are a selection of greetings that are often spoken with good intentions to strangers, family, friends, or other people during the months of December and January. In the United States, holidays with greetings include Christmas, New Year's Day, Thanksgiving, Hanukkah, Ramadan (which falls at a different time each year; every year it goes back 11 days) and recently, Kwanzaa. Some greetings are more prevalent than others, depending on the cultural and religious status of any given area.
Typically, a greeting consists of the word "Happy" followed by the holiday, such as "Happy Hanukkah" or "Happy New Year", although the phrase "Merry Christmas" is a notable exception. In the United States, the collective phrase "Happy Holidays" is often used as a simple way to refer to all of the winter holidays, or to the three major American holidays of Thanksgiving, Christmas Day, and New Year's Day. Some controversy has arisen regarding the phrase "Happy Holidays" as an alleged attempt to diminish Christmas although its use promotes other holidays commonly celebrated in the United States.
Info from Wikipedia: http://en.wikipedia.org/wiki/Holiday_greetings
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