I can't see that they are doing any different to any other tour operator. They negotiate a rate with the property and then put their own costing on it. At the end of the day if you are happy with the price you book it, if you're not, you don't.
But there is something here that does need looking at - although you were being charged more it wasn't obvious what it was you were paying for (at least at half term you know why it's pricey!!). So if you hadn't got it you wouldn't have known! A "better view" is a bit vague if they don't specify what a standard view is!
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