We stayed by Lake Konigsee at the Hotel Schiffmeister. The family suite (2 rooms) was huge, with balcony overlooking the lake and a private bathroom, cost us 99 euro a night including breakfast. The Konigsee boat trip to St. Bartholoma is beautiful, as is a ride on the Jenner Cable car. Hiking from the top of the mountain is very strenuous but worth it. In town, you can spend the day touring the salt mines, the castle, Watzmann Therme (day spa), riding the rodelbahn (summer bobsled), driving the Rossfeld Ring or hiking the Almbach Gorge to the marlbe mill. You can also take a tour of Hitler's Eagles Nest on the top of the mountain. There are also some other WWII buildings in the area, but they are not advertised and you will have to look hard to find them. Salzburg is only a 20 minute drive away. My kids are 8 & 11 and they loved the trip. The shops and restaurants by the lake are great and not too expensive. Make sure to buy the guys a traditional hat and hat pins. You can get pins from everyplace you visit. They are great souveniers.
Quick Tips:
To avoid the lines, take the first boat trip of the day. We only had 6 others on the boat with us. Midway to the church, the pilot stops the boat, opens a window and plays a trumpet out the side of the boat. The echo you hear is AMAZING ! The line to the cable car is long but moves quickly. It cost us 50 euros to go all the way to the top. The restaurant at the top is a little costly but the food is good. Hiking to the lookout spot is very strenuous, but the views are well worth it. I got some of the best pictures of my family from up there. For something different but fun, try the rodelbahn. Its a summer bobsled!! Doesn't cost very much and is well worth it. The salt mine tour is fun, but it does get cold. Make sure to buy the picture at the end of the tour. The Rossfeld ring road is beautiful. It cost a small fee. You can see Salzburg from the top. Great spot for pictures. At the Watzmann Therme you can get a massage or swim in one of six pools. Best Way To Get Around:
Having your own car is a must. From our hotel we could walk through the town, walk across the street to the boat dock, and just up the road was the Jenner cable car station. Getting to the main town of Berchtesgaden was a 10 minute drive.
Driving the Rossfeld Ring road is a must. You can sign up for a bus tour to Hitlers Eagles Nest. Having your own car gives you more freedom than riding the bus. Everything is relatively close but not close enough to walk to. Some places rent bikes, but with all the hills, you have to be in great shape and some places it would just be imposible to get to because of the steep incline.