Getting Around Hakone: The Free Pass, the Round Course, and How the Loop Actually Works
Hakone's transport is not a network so much as a single designed circuit. Because the region sits inside a collapsed caldera, with a steep wall on the Odawara side and a lake in the middle, the route in was built as a sequence of increasingly specialised vehicles: a mountain railway that switchbacks up a slope too steep for a normal train, a funicular where even that gives up, a ropeway over an active sulphur field where no ground transport is possible at all, boats across the crater lake, and a bus back around the rim.
That sequence is marketed as the Hakone Round Course, and it is the standard way people see the region. It is not a tourist gimmick bolted onto ordinary transport; each leg exists because the terrain made the previous mode impossible. Understanding this makes the day make sense, and makes it obvious why nobody drives the loop.
The ticket that ties it together is the Hakone Free Pass, sold by Odakyu, which covers the whole circuit plus most of the local bus network for a fixed price over two or three days. Almost every visitor should buy one. The exceptions are narrow: if you are going straight to one ryokan in Hakone-Yumoto, soaking, and coming home, the pass will not pay for itself.

The Hakone Loop with a Local Guide: Tozan Railway, Owakudani Ropeway and Lake Ashinoko
Bookable directly through AsiaByLocals, with a verified local operator.
From USD 526
Public transport version ~8 hours (9:30 AM - 5:30 PM); private transport version ~11 hours (8:00 AM - 7:00 PM)