Holiday accommodation is flourishing in Connecticut (6)
I believe the answer is:
chalet
'holiday accommodation' is the definition.
(I've seen this before)
'flourishing in connecticut' is the wordplay.
'flourishing' becomes 'hale' (I can't explain this - if you can you should give a lot more credence to this answer).
'in' means one lot of letters goes inside another.
'connecticut' becomes 'CT' (US postal abbreviation).
'hale' placed into 'ct' is 'CHALET'.
'is' acts as a link.
Can you help me to learn more?
(Other definitions for chalet that I've seen before include "Swiss house with sloping roof and wide eaves" , "A Swiss mountain cottage" , "holiday accommodation" , "Swiss holiday home" , "Wooden house with projecting eaves" .)