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Fri, Dec 11, 2009
The New Paper
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'If package too cheap, it's too good to be true'
by Crystal Chan

COMMUNICATIONS director Lynn Tan, 35, thought it was a good deal when she signed up for 100 sessions with Wellness Village Spa in July last year. It cost her $3,800 through credit card instalments.

She said: "I thought I was paying $38 per session, which was quite reasonable."

Then, early this year, Miss Tan found it difficult to get appointments.

She terminated the package and Wellness Village agreed to refund $988 for the remaining 26 sessions.

But before she could get her money back, the spa in Pan Pacific Hotel closed, on 9 Nov.

Miss Tan is among more than 500 Wellness Village clients left in the lurch by its closure.

Depending on the services, each client had paid between $550 and $6,000 for a package.

Miss Tan said: "There’s no protection for customers if the outlets close suddenly. I think there should be greater awareness about this."

Ms Daisy Ho, 55, a counsellor, paid $800 for 20 sessions on 29 Oct, just days before the spa closed. She thought nothing would go wrong because of the spa's location.

The Consumers Association of Singapore (Case) advises spa customers to think carefully before buying packages.

Its executive director, Mr Seah Seng Choon, said: "Go through the terms and conditions carefully before committing yourself...

"Also ask about refund options. Consumers should check whether a refund will be allowed for unused portions or services."

So far this year, Case has received complaints about five spa closures, down from seven last year and 13 in 2007.

She said: "Being in a five-star hotel, the rental for Wellness Village can’t be cheap. So if it’s selling a session for just $40, it’s not possible to make money. You also have to factor in costs like salaries and products."

Ms Lim said other spas in five-star hotels are known to charge at least $150 per session.

Our checks showed that Damai in Grand Hyatt charges $294 per session and Amrita in Swissotel Merchant Court $160.

Industry insiders told The New Paper that most spas get their customers to buy packages, which require upfront or monthly instalments for a certain number of sessions.

Spa therapist Bella Tan, 22, said: "Once the customers are tied down, they’ll keep coming back because they’ve paid in advance. This way, the spa is assured of repeat customers."

However, a check on online forums show there are complaints about spas pressuring customers to take up packages and customers finding it difficult to get appointments after buying packages.

Miss Chris Wong, 30, an accountant, told The New Paper how one spa made it difficult for her to make appointments when she refused to renew her package.

'Sorry, fully booked'

She said: "I had three sessions left on my 10-session package and the sales staff kept asking me to pay upfront for a renewal.

"I declined as I wanted to try another spa. After that, each time I tried to make an appointment, the therapists kept telling me, 'Sorry, we’re fully booked'."

But Miss Wong paid for her package in monthly instalments and got her bank to stop the payments.

Spas and salons contacted by The New Paper defended their business model.Mr Raymond Ting, business manager of Zen Beauty Spa in Square 2, said: "Customers get discounts when they buy packages.

"If they ask what happens if the spa closes down, they don’t have confidence in it. In that case, they shouldn’t take up the packages."

Not all spas have packages.

Grand Hyatt’s Damai sells memberships to allow clients to have flexibility and control in choosing treatments. Its spokesman said: "Membership offers clients three treatments to start with and 20 per cent off any subsequent treatment for a year."

Japanese cosmetics brand, Fancl, does not have packages for its facials.

Fancl's spokesman said: "We don't offer packages because we don't want our customers to feel pressured. At the same time, it also enables customers to have the flexibility of choosing among the various facials."

 

This article was first published in The New Paper

 

 

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