A workation is when you take a work trip to another city for something like a trade show. Upon arriving you register for the show, obtain badges and various pieces of trade show material. After this recreational non-work activities will be undertaken for the rest of the trip. Sunscreen may be required to mask tanning. Often these trips are taken by employees of the opposite sex who are engaged in a discrete relationship.
Employee1: Are you ready for our Workation in Las Vegas?
Employee2: Oh yes. All packed. Remember, what happens on a workation, stays on a workation!
Related to staycation - but instead of taking vacation time off and staying at home - one reports to work but goofs off. Related to "homeing from work" and "furlough time" - however this is goofing off for goofing off's sake, not for any ulterior motive. Workations usually involve post hangover-days, post-special project deadlines, and generally any time you're just tired of work and need a break.
Dan: "What did you have on the agenda for today Sarah?"
Sarah: "I'm going to finish these TPS reports this morning, and after lunch I think I'll take a workation and check out eBay and Overstock.com."