Fiji has always been an expensive destination in relation to distance from Australia, especially at School Holiday times.
Just because the likes of Wotif, Hotels.com, Booking.com and so on have some specials doesnt mean there is a huge vacancy rate - these agencies are usually given a quota of rooms to sell, and when they have sold their 5 or whatever they say 'full'. A lot of their specials are also the "Pay now, no refund" variety.
Try Bali, Phuket and other 'family' destinations around Xmas and you will probably find a similar story too.
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