I just found this How-To video on Etsy and it's SO PERFECT for my Luau BBQ! I swear it's an omen!
The lanterns should be pretty cheap to make too since most of the supplies can be bought at the dollar store. The only thing I would do differently is make them light up without cords so I can hang them from trees at the back of the yard. No one wants to trip over cords. Especially if people will be drinking. Yikes!
I'm thinking maybe glow sticks or tap lights. Does anyone have any better ideas? I'd love to hear them!