Cheapest Travel in Kansai Area

I will be arriving at Osaka, stay a night, and then travel to Kyoto. I intend to stay in Kyoto for 5 days and use it as my base to explore the Kansai area. I intended to buy the Icoca Haruka package but realised that it does not cover travel to Himeji. Should I buy the Icoca Haruka package or should I buy some other JR pass ? Or should I go to Himeji from Osaka for a day trip before I proceed to Kyoto?
Both my wife and I are senior citizens and we are looking at suggestions and advice where we do not need to carry our luggage with us when we are sightseeing.

Have you looked at the other Kansai area passes? There are a few different options. This website has a comprehensive list of rail passes; take a look there and see if there's one that suits you better.

You may need to understand the following things.

1. Icoca and Haruka is a package of one way ticket valid on Haruka and a IC card (Icoca). Round trip version of Icoca and Haruka includes two ticket of one way Haruka ride. This "Haruka ticket" is valid before you get out of the station gate: For example, if you use this Haruka ticket to go to Kyoto, you can't get out at Shin-Osaka station. If you go out of the station, then the Haruka ticket will be collected by the station staff.

2. After you get out of the station (Tennoji, Shin-Osaka, Kyoto etc), you can use Icoca IC card. This is a pre-paid card with 1500 yen value and 500 yen deposit. Note that there are many rail companies in Japan, and most of the rail pass are valid only for certain companies. For example JR's Kansai Area Pass

https://www.westjr.co.jp/global/en/travel-information/pass/kansai/

is valid only for JR trains. You can not use Kyoto City bus with this pass, for example.

Kansai Thru Pass

http://www.surutto.com/tickets/kansai_thru_english.html

is valid for only non-JR trains. You can use, Nankai, Osaka metro, Hankyu, Kyoto metro, Kyoto city bus, Kyoto bus etc, but it does not cover JR trains.

Icoca is issued by JR, but it is valid on both JR and non-JR trains. This is a big advantage, but please note that this is not a "pass". When you use Icoca, the amount of money it has is deducted.

3. If you stay near Kansai Airport for the first night and then proceed to Kyoto the next day, Icoca and Haruka will be nice. After using the Haruka part, you will still have Icoca card valid for 2000 yen (the 500 yen deposit will be refunded when you leave Japan from KIX). So, your Kyoto trip from KIX costs only 1000 yen. You can go with non-JR train, but it requires 2 transfers and is slower than Haruka.

4. In general, Kyoto is the "must" place for foreign travelers to Japan, but the hotel rates are in the expensive side. So you might better stay in Kyoto for sightseeing in Kyoto, but for the "base", you might better consider other places such as Osaka.

5. JR's Kansai Area pass will be cost-effective when you go to Himeji, since it is somewhat far from other cities in Kansai area, and JR train is faster than non-JR trains, especially in Kyoto-Osaka-Himeji section.

I can't say which are best combinations unless you specify the exact itineralies, but my guess at the moment is Icoca and Haruka round trip version plus Kansai Area Pass one day (for trip to Himeji). One day bus pass for Kyoto (500 yen) might be also useful.

Thanks for your advice. Very useful. With regards to hotel, will it be about the same if I travel to Kyoto from Osaka for 2 days?
i have not decided on my itinerary because a lot will depend on the train tickets. The main places I want to see are Kyoto (2days), Himeji (1day) and maybe Nara (1day). I have one extra day because it is a 5 day holiday. Any suggestions please?

For the extra day you could go to Kobe, Hikone or Nagoya.

i have not decided on my itinerary because a lot will depend on the train tickets.

Well, the exact date is also very important. I guess you have already bought the plain ticket. If you hit the very busy days such as early April (cherry blossom season) this year, your chance to get affordable and nice rooms will be very scarce. In that case, you might better buy Japan Rail Pass and commute from Nagoya. Of course, this is the extreme case, but hotel tend to be very crowded in these days in Japan.

The main places I want to see are Kyoto (2days), Himeji (1day) and maybe Nara (1day). I have one extra day because it is a 5 day holiday. Any suggestions please?

With 5 days, these are very reasonable I think. Take as little luggage as possible (ideally, one small backpack each is enough). If you stay in so-called "business hotel", it will provide self service laundry where you can wash your clothes. If you travel light, you can change hotel day by day easily.

Thank you for very helpful advice. I will be flying in on 17 April and leaving on 23 April.

I will be flying in on 17 April and leaving on 23 April.

This is somewhat too late for cherry blossom in most of Kyoto, but you can enjoy new green leaves of this year, which is very nice. Also hotel tend to be less crowded as compared to early April. Also, 15th to 20th is good for cherry blossom in Yoshino.

http://www.japan-guide.com/e/e4152.html

If you land late at night, you should stay one night around Kansai Airport (KIX) and then proceed to Kyoto next day.

17th KIX
18th Icoca & Haruka (Haruka) Kyoto
19th Kyoto
20th Himeji (JR's Kansai Area Pass) and then Osaka
21th Nara, stay in Osaka (Icoca card).
22nd Yoshino or Kobe or Osaka, night in Osaka
23rd Osaka to KIX (Haruka ticket)

As far as I searched, the room rates for these days are not so outrageous, so you can choose at your preference. In Kyoto and Osaka, each area has its' own pros and cons.

Kyoto

Kyoto station area
Pros: Easy access.
Cons: Less stores and restaurants.

Central area (Kawaramachi, Sanjo etc).
Pros: Somewhat near to tourist destinations (Higashiyama district). Lots of stores and restaurants.
Cons: You must take metro from/to JR Kyoto station.

Osaka
Shin-Osaka area
Pros: Close to Kyoto and Himeji.
Cons: Almost no stores/restaurants.

Osaka (Umeda) area
Pros: Close to Kyoto and Himeji. Lots of stores/restaurants.
Cons: Far from Nara and Yoshino.

Namba area
Pros: Close to Nara (by Kintetsu). Most Osaka-ish place. Lots of stores/restaurants.
Cons: Far from Kyoto.

Tennoji area
Pros: Close to Nara (by JR). Direct train to Yoshino (Kintetsu). It was my home town :). Tend to be cheaper.
Cons: Far from Kyoto, but if you take Haruka, you can go directly to Kyoto (if you have Kansai Area pass). Less stores/restaurants as compared to Umeda and Namba.

Thank you so much. That sounds like a really good itinerary. Arigato. This is our second visit to Japan in less than 6 months. We were in Hokkaido in November but this is the first time we are trying to go on our own without joining a tour.