Vegetate on vacation touring Chile resort in caravan, perhaps (7)
I believe the answer is:
vehicle
'caravan perhaps' is the definition.
(caravan is a kind of vehicle)
'vegetate on vacation touring chile resort' is the wordplay.
'on vacation' says to hollow out the word (remove centre letters).
'touring' means one lot of letters goes inside another (touring can mean going round).
'resort' indicates an anagram.
'vegetate' with its centre removed is 've'.
'chile' is an anagram of 'ehicl'.
've' going around 'ehicl' is 'VEHICLE'.
'in' is the link.
(Other definitions for vehicle that I've seen before include "Lorry perhaps" , "Eg, car" , "Means of conveyance" , "Structure for transporting" , "Conveyance for transporting passengers on land" .)