Hi Lesley
We are also a family of 2 adults and 2 children (ages 5 and 9) - for a number of years now we have being doing our holidays DIY not only because it is alot cheaper, but also we have noticed that alot of hotels have family rooms, but for some reasons these are not possible to book using the conventional UK tour operators !
We mainly use this site for flights ;
http://www.xl.com/ (use the promotion code TESCO to get an extra 20pp off each flight) and these sites for accommodation ;
http://www.findmeaccom.com/scripts/TDBkgEngine.dll/Startup?utm_id=
http://www.sky.onlinetravel.com/hotels/search.asp
We then either hire a small car from the airport for the week (to run around in, and great for beating the buses back to the airport on departure) or arrange a separate transfer by shuttle bus or taxi (plenty of websites doing this - just do a Google on the destination you are going).
We went to the Iberostar Creta Mare/Panorama near Rethmynon Crete last year and it is FANTASTIC ! Infact you will find the Iberostar chain of hotels normally have great standards of food and accommodation, and are very family orientated - thus plenty of family rooms (without bunk beds !).
Our holiday last October to Crete cost £500 less than the equivalent package ! and that included us having a car to run around in all week.
The more you look into DIY the more you will see just how much package companies make on the child places as many hotels charge very little, and sometimes nothing (!) for young children, and even most flights have child reductions ( also note : XL.Com only charge £20 to carry under 2year olds).
This year we went to Florida DIY for 14 days ;
- fly drive £1210 (Travel City Direct)
- 10 nights in fantastic villa £550 (booked direct with owner)
- 4 night Disney cruise £911 (booked with specialist US website)
and this was all booked a year in advance so we are not talking last minute prices !
We are off to the Iberostar Grand Azur in Turkey this year - doing DIY is the only way we can afford 4*-5* hotels and we love the flexibility and choice it gives us too.
My final tip would be to book your flights at least as early as possible as on the whole they do tend to increase quite rapidly soon after release (unless they have a really bad year - and there is no guarentee of that ). I have just booked my flights for Turkey for October 2007 !! I cannot book accommodation yet (too early) but I already have an idea of where I'm going to be staying and which site to get the best prices from. The important thing is to book flights first with DIY - you can always get accommodation sorted out after - you would never end up sleeping on the beach I promise you ! But don't forget to look up the hotel reviews on here and Trip Advisor before you book !
Do have a look - I promise you won't regret it, and you will have many more years of great savings ahead of you with such young children.
Hope this is of some help to you, and other HT members
Judy