We have to go DIY now, as we have 3 kids and have to go during the school holidays. If we booked a package, firstly there are not many hotels that have rooms big enough for 5 (the kids are still too young to go into their own room - 8, 5 and 2) and if we were to book even the most basic 2 bedroom apartment we end up paying huge under-occupancy supplements, in some cases this can add over a £1000 to the cost.
LAst year we went to Sicily - flights were £400, fantastic apartment, with 2 bedrooms, large lounge, dining room and full kitchen (not just a hob with 2 rings!), and swimming pool with fabulous view across the bay of Cefalu - £750, via
http://www.homelidays.com and car hire £350 - a total of £1500. When you look at hotels in Sicily, most of them are around £1000 per person (and that's not including the car!).
This year we are going to the south of France - flights £400 with BA, apartment in Nice £800 and car hire £250 - a total of £1450 - compare that to French Life, Cresta, Britanny Ferries etc.
Definitely worth going DIY for us.
Sue