We stayed at Fuji Lake Hotel for 2 nights in Oct 2011. It was the end leg of our 7-day trip to Tokyo and we were really looking forward to a quiet retreat - a different kind of fun from cosmopolitan Shinjuku, Shibuya and the like.
Before we made our decision on which Mt Fuji lake resort to visit, one of my Japanese friends had advised me to go Hakone instead of Kawaguchiko. Her reason was that Hakone would be a bit more 'touristy' whereas the latter would be more suited for the local Japanese tourist.
She was right! Kawaguchiko was a quaint little town which sees many more domestic travellers than international tourists. It was quite easy to realise this once we reached the bus terminal. But this suited my wife and I totally fine as we really felt more immersed into the culture. For instance, there were minimal English signs and the lack of other fellow non-Japanese throughout our stay somehow allowed us to soak in the sights and sounds a little deeper.
We had a traditional kind of tatami room at the ryokan. The view of Mt Fuji was indeed breathtaking; enough to keep us in awe as we spent many moments just staring at it ;drinking grape wine bought from our day excursions. The view of Mt Fuji again at the outdoor onsen made every cent well worth it.
There were no major tourist 'traps' in the vicininty. The 2nd day morning, we took the local bus to one end and trekked back about 10km back to our hotel. On the way, we stopped by wonderful pastry joint, cafe and wine shop to sample the local fare. It was one of the nicest walk we ever had. The only thing 'touristy' perhaps were the 'cycle-boats' which allow visitors to 'paddle' round the lake.
For both nights after our evening onsen, we would enjoy the sumptuous dinner the hotel ktichen had prepared. The freshness of the food was unbeatable; the variety, awesome.
All this does not come cheap of course but I would conclude overall it's value for money. Actually, 5 months since our visit, I have forgotten the initial 'pinch' I felt when booking this expensive hotel. But what has been etched in my memory till today are: the great view of Mt fuji, soul-invigorating outdoor onsen, the breathtaking walk around Lake Kawaguchi and the sumptuous dinner awaiting us every night.