Travel independently. There are lots of sites offering apartments suitable for 5 and book your flights with any of the airlines offering Palma. I guarantee you will do it cheaper than any of the holiday companies.

http://www.alpharooms.com/

https://www.tobook.com/

http://www.travelrepublic.co.uk/

...to name only three.

hi
just back from palma nova and stayed in the playa s caboners apartments they are lovely great place to stay there are 5 of us they have a few huge apartments although its a one bed apartment they are massive we had 3 kids in one room and we slept in living area we had a large settee each which was the size of a single bed when we arrived the third bed was in the living area but was easily moved into the bedroom when leaving hotel you crossed the road went down some steps and there was the beach
great place to stay highly recommended

sorry forgot to mention this was a thomas cook hotel so give them a ring and they can set you up here

Check out loads of quality apartments at http://www.holiday-rentals.com