The Eagles welcome Michael Laudrup's side to Selhurst Park on Sunday looking to secure back-to-back home wins in the Barclays Premier League.
Swansea will go in to the game on the back of a famous 3-0 Europa League win in Valencia with the likes of Wilfried Bony and Michu continuing to impress.
The Welsh outfit have been drawing the plaudits for their style of play for some years and Holloway admits his outlook on the game was altered by taking in some of their games.
"Swansea have changed how I see the whole of football," he said.
"When I was sacked by Leicester I went to watch four or five of their games and what they did made me realise how beautiful the game is and how passing and moving can make you a better defensive unit."
After an unsuccessful spell in the East Midlands, Holloway moved to Blackpool and guided the club in to the Premier League with his side aiming to play a similar style of football now synonymous with Sunday's opposition.
He was ultimately unable to keep the Seasiders afloat but is now back in the top flight with Palace and is relishing the chance to manage on the biggest stage once more.
"I'm enjoying being there again," he said.
"I'm enjoying the challenge of tactics and the challenge of working people and coaching people, getting them to believe in what we are doing and get them to buy in to our ethic.
"It is really exciting, as a coach you are tested day-in, day-out at this level.
"Swansea will be heavy in possession and will move us around and try and play and that is a challenge.
"It is so exciting, the whole level and to see what it means to people, it is quite sensational really. What we want to do is keep growing and I can see signs of that already."
Holloway guided his side to a 3-1 win over Sunderland on their last outing at Selhurst Park before a 2-0 loss at Manchester United last weekend.
Midfielder Kagisho Dikgacoi was sent off just before half-time at Old Trafford and will miss the match with Swansea but Holloway was delighted with the effort of his players whilst admitting he now operates with a more defensive outlook.
When asked if a solid defence was the best starting point for a successful campaign, Holloway replied: "I think it is for this group.
"We actually got promoted by being hard to beat, hard to break down and then counter attacking. We had patterns of stopping someone else's play.
"I watched Bayer Leverkusen against Man United [on Tuesday night] and I felt a lot more comfortable than their manager would have done.
"There were good signs last week from my point of view. We were pretty difficult to break down with 10 men and all we have to do is attack better but that is all in the coaching really, we will get the group outside and work together.
"We are showing signs of growing and getting better and what we have got to do now is put all of the elements together.
"I think we will have a chance because goal difference counts at the end of the season but I would just like to see us a little bit more free when we do attack."
As well as the suspension for Dikgacoi, Holloway will serve the final match of his touchline ban on Sunday.
The 50-year-old may be able to call upon summer signing Jerome Thomas for the first time after he returned to training but Jack Hunt, Jonny Williams, Joel Ward and Yannick Bolasie are all ruled out.