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Flight + Hotel packages from Virgin and British Airways

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I'm planning a trip to London for my birthday in April. I've checked out both websites, along with talking to a travel agent. The flight + hotel package prices from the airlines are much more affordable than the Trafalgar city tour (no flight included, just lodging + a hop off hop on tour) offered by the agent.
Are these prices too good to be true? The lodgings I was looking at were less than a mile from the city center. I've read before that the cheaper motels are further away from the city and things to do. Has anyone had any issues and/or good luck from booking a package like this through an airline? I am a newbie to international travel and would like to minimize major problems and get the most for my $$.
Thanks!

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