Is a rehearsal dinner necessary?

I have a very small wedding about 26 guests. Only one is local the rest are from out of town. About half of them are relatives or involved in the ceremony. Is it necessary to host a rehearsal dinner? My family's paying for the entire wedding I'm covering most of the honeymoon and the groom's parents have both passed. I feel as though paying for dinner the night before the wedding will cost close to the actual wedding meal. I'm considering covering some appetizers at the hotel lounge for all overnight guests but I'm wondering if that will seam cheap and/or a dinner is required?