I can't seem to find the hotel, on the link you for lastminute.com - probably something I've not done!
Anyway, the reason lastminute.com makes money is cos people are lazy, and want to book everything in one place. So obviously, they mark up everything to take their cut.
Now, having said that, if something goes wrong with either your flights or your hotel if you book each separately, you are not covered by any of the normal ABTA insurance etc. So make sure you have decent travel insurance, or are prepared to book another hotel/flight with your own cash. Additionally I THINK if you book on a 'foreign' website a recent ruling says you are not covered on your credit card - just on a british one - but that may change.
So, the moral of the tale is get decent insurance yourselves - and have a lovely time!
