Grrr just typed out a whole answer and lost it! Anyway, congratulations, i would do it all separately, book the flights with BA or virgin or whoever then contact the hotel direct to arrange with them. Package holidays are more expensive cos the travel agent wants a cut, with the internet it's easy enough even websites like expedia are cheaper but not as cheap as diy. Eight grand is ridiculous unless you're going all in, first class and for a year or something. Good luck, have a great time and if you need anything else give us all another shout.