Hi, simran,
Call directly to the Scottish Tourist Board information office in Portree. Their direct telephone number from the U.S. is 011 44 1478 612992. Let them know what your dates will be on Skye, and what you're looking for in the way of accommodation, i.e.: hotel or B&B; double, twin room, or family room; en-suite or shared bathroom; and the price range that you're hoping to pay. The U.K. pound is now trading at $1.40, so 100 pounds would be $140.00, 80 pounds would be $112.00, etc. . You could also try e-mailing the office at [email protected], but I find that a telephone call works wonders. Be aware of the time difference. They're five hours ahead from the U.S. East Coast.
You don't necessarily have to stay in Portree. Broadford, Uig, Elgol, Carbost, Edinbane, and Kyleakin are quite nice, as well. And don't forget hostels. The Skyewalker Hostel in Portnalong has very nice en-suite twins for about 60 pounds. As there are three in your party, you may have a little more trouble finding accommodation. You could try for a double and a single. Many B&Bs have rollaway beds for families.
The information office can give you the names and telephone numbers (or e-mail addresses) of hotels and B&Bs on Skye that you may not have considered, or found on the internet.
Best wishes, and let us know on the forum if you've had any luck.
Mike (auchterless)
p.s.: I remember back in the 1970s, when I first started traveling to Scotland, you never needed to make reservations ahead of time. Even in June and July, you could just drive in to a town or village, and you could find lodging right away, with no problem. My, how times have changed!