Book Cheap Hotels in Roses

My family has been coming to this hotel for the last 40 years. We probably discovered this hotel way before most of the staff was even born...So I was a bit disappointed by the way we were treated. I invited my two nieces and my parents for a few days early July. Initially my brother was suppose to come but for health reasons decided not to join us. I booked the three rooms through Travelocity. One was a suite for my parents and the others for everybody else. When I booked the rooms I decided to include dinner. Since my parents are old I thought it would be easier for everybody. When my brother decided not to come I called Travelocity to cancel his reservation. It was done before June 27th as that was the limit to change anything. When we got to the hotel it was clear my brother wasn't there. Instead of 6 we were only 5. But nobody at the reception said anything. Since I had already spoken to Travelocity I thought I wouldn't be charged for three nights of dinner for an adult that didn't show up. I was wrong. When I left, the reception made me pay for everything and asked me to deal with Travelocity. I was told they couldn't do anything. So I called travelocity who called a few times the manager explaining the situation. The manager refused to reimbursed me. It was their policy. SOOOO...What was the point of me canceling before June 27th? Why wouldn't they want to reimburse me barely $125? It's completely unprofessional. Is it really worth loosing such good clients?