well everything depends on the time of year (what dates is it for?) and the hotel (i'm not familiar with the park lane) but that does seem expensive to me. even if the airfare would cost $800 pp (which is possibly in the summer, but you could do better) that means the hotel is $300 a night.
That doesn't seem to bad. When are you going? Is it a direct flight?
I am staying at the Radisson Edwardian Berkshire which is right on Oxford street and I am paying about £125 a night here. Our fligth was about $400, but we had a layover in iceland.
$1412 is actually pretty decent, if you are including hotel.
ETA, most times, I fly from DC, and my flight direct to London is usually between $350-500, and I pay about $200 a night for hotel room, and my stay is usually between 5-7 days, so my total is usually between 1350 on the low end and 1900 on the hight end. But it does depend on the hotel you are staying at and the time of year.
Try virgin vacations. They have great deals. Also check out travelzoo.com
Most of their packages are air-inclusive, almost all under $1000. They book just a few months out, but the way travel goes, I find it is generally always better not to reserve too far in advance. I've never in my life purchased anything involving airfare more than 3 months out (usually about 1 month)
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~ dc
"Anyone who lives within their means suffers from a lack of imagination" - Oscar Wilde