I had toilet, basin and shower replaced. Old system boiler replaced with a combi relocated to the garage, heating & hot water changed to pressurised at the same time. The shower was converted from electric to digital (combi hot water).
Tiling isn't done yet but we've had a quote of £300 for labour.
Whole lot cost about 6k including the cost of fittings I bought to make sure I got what I wanted.
I think he's added a fair bit of overhead on your quote.
Removing old tiles was refused by the two tilers I spoke to, it's a tedious job but only a days work.