High quality services and customer satisfaction are important determinants of destination competitiveness. For effectively and efficiently managing service quality and providing customer satisfaction, managers need to know how important satisfaction drivers are, and how their performance is perceived by the customers. Importance-performance analysis (IPA), in this context, is a convenient analytical technique that guides manager's decisions. In this article, it is argued that a revised IPA using an isoline of importance and performance instead of the traditional quadrant analysis yields better results and increases the diagnostic value of IPA. This article shows empirically that market segments differ significantly within these two dimensions of the analysis, and so it is suggested that IPA should be conducted on a segment rather than an aggregate level. The empirical basis of the article is formed by a sample of 821 customers in a Turkish destination. By utilising IPA technique, determinant attributes of the competitiveness for subject destination could be identified for four market segments. © SAGE Publications 2011.