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Visit to Lucerne on Sunday June 11th.

We are planning a one day visit to Lucerne from Zurich. Do they have hop on hop off buses? What is the best way to see the city? Also, should we combine this with touring any alpine villages nearby? And is a boat ride on Lake Lucerne recommended?

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Luzern old town, and the tourist areas, are directly across the river from the station. Less than 5 minutes walk. The town centre is pedestrianised, no traffic including buses. It is best seen on foot.
This 360° panorama shows the town, station to the left of the river, old town to the right, and lake behind you:
As you probably know, there are 2 trains per hour from Zurich to Luzern, and it takes about 60 minutes.

Yes, a boat ride is recommended. The boats leave from the dock in front of the station. You can get short round trips, or long all day trips to the far end of the lake, then catch a train back.

If you want to see alpine villages, that is another day. Luzern town, plus a boat trip, is a full day.
One suggestion is the route from Luzern to Interlaken, which goes over the Brünig pass. If you are prepared for a very long day, you could do the Glacier Express as a loop (Zürich - Chur (Glacier Express) Brig - Visp - Bern - Zürich). Many more options if you stay overnight.

And, why are you staying in Zürich and not much nicer Luzern?