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Hotel Rules in Europe?? Help!!

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Dear fellow travelers,

I am planning trip with family and suddenly finding myself in difficult situation. Ours is family of 4 - myself, my wife , 3 year old boy and 1 year old girl.
While making hotel reservations online, I am getting very high rates of Euro 250-300 in a hotel where average room rate is Euro 100. When I called up 1 hotel, I was informed that hotels in Europe considers even children as separate person, so they provide bigger room and extra bed.
Coming from India, we don't let child sleep separately and don't need extra bed at least for 1 year old. The situation will almost double my living expenses in total cost.
Can you please help me with alternative options like service apartments, etc.?
Does any hotels/ hotel chain allow kids in same room rates? Does this policy differs from country to country in Europe?

Cheers
Abhi

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