What is the best way to get to our hotel on the Grand Canal from the train station? We have 4 people in our group and 4 large bags. How much does a water taxi cost and can one taxi fit 4 people and luggage?

water taxi are very expensive. you may be able to take vaporetto.
http://www.venice.nu/maps/vaporetto-map

the 3 times I have been to Venice I have noticed most taxi or empty and the vaporetto is used by all.

Where on the Grand Canal is your hotel located? Depending on location, best might be walking, water taxi, or vaporetto. Or some combination of the 3.

Yes, a water taxi can easily hold 4 people with luggage.

The train station is located right on the Grand canal - so paul's question is correct - where exactly is your hotel.

A vaporetto will cost you 6.50 euro each, or 26 euro total, for 1 stop or 10. A water taxi (guessing) will probably run twice that, depending on the distance.

What time of year are you traveling and what time of day are you arriving?

The Vaporetti can be extremely crowded at certain times. If your group is likely to get very cranky hauling heavy bags in the heat or rain and having to fight for space getting on and off a vaporetto, it is not an extravagance to spend an extra 25 euro (6e per person) to avoid that.

We stopped by the desk (right outside the arriving doors)to arrange and pay for the water taxi by Credit Card 95 Euros for 4 of us (including luggage one for each), walked, gave the voucher to a driver and were on the way to Venice.

Very easy. Worth every penny!

I think we will go for the water taxi as I think it makes sense as Stepsbeyond and Matroskin says... thanks all! We are still i the initial stages of planning our trip. Thinking about doing it early Fall, maybe mid September. Has anybosy been to Italy at this time and what is the weather like? We are planing to go to Rome, Florence and Venice.

Early fall is the perfect time! Our first trip was 16 days from mid September. We started at Rome, then Amalfi, then Florence and Tuscany, Venice, Milan.

We were very lucky with the weather and started using light jackets only in Venice and Milan.

Have fun planing the trip! It is one of my favorite part of our trips!

Matroskin: was that price from the train station or the airport? Seems like an airport price to me.

ranmaille: using the taxi for 4 people with luggage is a good choice. Also, if it is the first time in Venice, there is nothing like the water taxi down the Grand Canal. Nothing.

I've only had wonderful weather in Italy in mid September. Later in the month and in early October we've encountered some colder or wetter days.

Although a decision seems to have been made, the key question is still to be answered. Paul asked it - where is your hotel? Without knowing that, you cannot get the advise you need. Also, how long will you be in Venice. You may not know, but you can buy vaporetto passes good for unlimited trips in 12 hour increments. The longer the pass, the cheaper the vaporetto ride. Our 72 hour pass at 33 Euro far more than paid for itself - we used it often, sometimes just for the heck of it. The passes are also good for trips to the outer islands like Murano, Burano, and Torcelo.

The fall is a great time to visit Venice. The summer crowds have thinned out - and that means more room on the vaporreto. The weather is usually delightful.

Sorry!
My mistake: it is the price from the airport. Apologies!

ranmalie--if your hotel is only 100 yards from the train station, then a water taxi would not be the best way to go, so the hotel location really matters.

Also, I think we are all assuming you mean S. Lucia Station in historic Venice, and not the Venice Mestre station--are we correct in that assumption?