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If it comes to taking a train, it's not a bad option in terms of getting to Kraków, the train system is a bit like stepping back in time, but I'm sure the kids would enjoy it, the countryside is a bit boring after a while, but it's only just over a two hour ride, and the station is close to the centre of the city.
I know that hotel well, it's only a Courtyard, but it's at the top end of that particular chain, and right next to the terminal building. Quite suitable for the circumstances, though I'm sure you are keen to get to Kraków.