My husband and I are going to be in Kitzbuhel for 12 days in an official capacity. However, we have the weekend off while we are there. Should we 1. Spend the two days in Kitzbuhel and just relax 2. Go hiking close by in the Austrian Alps 3. Go to another city for the weekend (maybe Budapest or Venice or Salzburg) Any suggestions for hiking or city trips for the weekend are welcome. :)
I don't think I would try to go as far as Budapest or Venice. There is a lot to see closer in. Salzburg would be nice. You could also go to Hallstatt or Berchtesgaden. You could go to Innsbruck and take the train over Brenner Pass into northern Italy (Alto Adige and the Dolomites).
We spent several days in Zell am See last year and visited Kitzbuhel as a day trip. Zell is lovely and could be done as a stop over on the way to Berchtesgaden. Checking google maps, it's only about a 2 hr drive to Berchtesgaden from Kitzbuhel via Zell.
I wouldn't try to venture too far away, however, as you are in the middle of some very beautiful scenery as it is.
You might consider southern Austria, particularly Portschach on the beautiful Worther See. It's an easy weekend trip from Kitzbuhel. Also, Vienna would be a much easier side trip than Venice or Budapest. All are great places.
There are wonderful villages - Mayrhofen is a favorite - and good hiking in the Zillertal. It is easily reached by train from Kitzbuhel.
My family and I have gone to St. Johann in Tirol the last few summers, and that's just down the road from Kitzbuhel. The area is just gorgeous. I highly recommend you spend at least one day driving the Grossglockner Road, the most beautiful alpine highway anywhere. You can probably drive the actual length of the road in 2 hours, but there are lots of scenic vista points along the way, as well as restaurants, gondolas, and other fun distractions.