Quick question regarding holidays in Japan, if anyone knows.

I've been in Japan twice over New Years and I know everything shuts down between 31st ~ 4th. Things are dead then. Is this the same around Obon in August? Which time is crazier/expensive regarding travel and things being closed?

Things don't shut down over Obon.
But it's hot.

It's not true that everything shuts down between 12/31-1/4.

Most major stores only close on 1/1. Some dept stores (eg, all the Seibu-related ones like Seibu/Parco/Pepe) even stay open on 1/1. Trains run all throughout that time period. Most major attractions either never takes a day off (eg, Sky Tree, Tokyo Tower) or may close only on 1/1.

Obon is DEFINITELY the better choice. The only issue during Obon is that some trains can get sold out, so it's good to purchase tickets a few days in advance. But otherwise everything operates on a regular schedule. New Years is always very very tricky as prices go up a lot, things are sold out, and a lot of places are closed (museums, cultural sights etc). Even large parks can be closed over new years (Shinjuku gyoen).

Obon is the worst time to travel in terms of the weather, but very few places are closed.

This.

Not all business will close on New Year�s period (Dec. 31 � Jan. 3) in Japan. Maybe 30 years ago most businesses did close during New Year�s period in Japan. But still see noticeable number of businesses will be closed during New Year�s period.

Most business will be open during Obon period. However, it will be hot and muggy during Obon period. Trains and roads will be very busy during Obon period. Most tourist attractions will be very busy with long wait during Obon period. Many people do take time off from work during Obon, and same time kids are in summer break from school. Places get very busy during Obon.

For all the years of my teaching career, I could travel to Japan only in the summer, so I was there for a lot of O-Bon periods.

Unlike New Year, it's not a legal holiday, nor is it the same dates in every part of the country. Trains may be crowded, but things tend to remain open. Occasionally you will find that a small, family-owned business is closed as the family travels to see its rural relatives, but you will have no trouble finding places to eat, stay, and shop.

You may be able to find public or neighborhood celebrations in the more residential areas of the cities. You may even be asked to join the simple line and circle dances that people do for the festival.

But it's going to be hot and muggy. The dances take place at night, which is a good thing, considering the weather.

Did we mention that it's very hot and muggy?

Doesn't cool off much at night either.

Thank you all for the responses.

I've been to Japan twice over new years... maybe the major attractions only close on 1/1, but I found so many of the small owned coffee shops, restaurants, etc. were closed through January 4th. Plus, that time just seemed very very quiet, even in Tokyo.

I understand it will be oppressively hot and humid during Obon. That's fine. I grew up in Florida and live in Houston. I prefer HOT AND HUMID. ^

That said, I'm taking my 20 and 22 year old cousins to Japan August 3 - 13. Just how the dice landed based on timing. Should be fun and I'm glad things don't close as much during Obon.

Related, I cannot find any basic economy award flights back to mainland US from Tokyo during mid August so far. Nightmare. I've looked on AA, JAL, United/ANA. I don't have any Delta miles. booooo.

I was in Shibuya on 2 Jan. Everything was open, and the buzz was that of a typical Saturday in Shibuya. It's true that some small businesses do stay closed for multiple days around New Year's. But that would depend on the part of Tokyo... would see more of that in suburbs. But even in the small town where my jikka is, majority of businesses are open 2 Jan.

Keep looking, but unfortunately you probably needed to have snagged a seat a few months earlier. Aug is a tough month... July is always much more available. For all the criticisms Mileage Plus gets, I still think UA/NH is very generous with their saver award seat availability in Y for TPAC flights. DL is just awful in that regard... they give you nothing. I don't know about AA. If you're able to take your trip a bit later, UA/NH has plenty of saver Y seats from TYO to US in late Aug.

In major tourist areas, places will be open around New Years, but get away from tourist places and a lot of places will be closed. Convenience stores (and chain places in general) will be open, but basically every other place will close for at least the first (and, very likely, other days as well).

But the trains run all night from 12/31 to 1/1!