Hoffenheim eased past Borussia Moenchengladbach 2-0 with goals to Iceland's Gylfi Sigurdsson and striker Demba Ba.
Schalke, who have won their last three league games after a bad start and qualified top of their Champions League group for the round of 16, saw Christmas come early when coach Felix Magath restored their holidays to 10 days.
Magath had been angered by Schalke's bad start to the season and late last month he gave them less than a week off and ordered them to return to training on December 27.
"I am very satisfied and that is why we all together will have a break until January 2," Magath told reporters. "I am satisfied with my team's performance. It was a tough task especially given the pitch condition."
The loss was Gladbach's sixth consecutive defeat in all competitions and, with the team in bottom place in the league as well, coach Michael Frontzeck's future at the club is now in serious doubt going into the four-week winter break.
