Purpose – The paper focuses on guest satisfaction and service process improvement, considering the importance of quality elements as an important factor for differentiation in the market. The purpose of this article is to identify the differences in the attitudes of domestic and foreign guests who have stayed in homestay accommodation. As part of the research, an importance-performance analysis was conducted to compare the importance of and satisfaction with quality elements among domestic and foreign guests. Design – Primary research was conducted in September 2020 in 10 counties of the Republic of Croatia. A total of 168 valid questionnaires were collected. The sample consists of guests from 17 countries who were accommodated in homestay accommodation. Methodology – For this article, importance-performance analysis (IPA) was performed and the importance of, and satisfaction with, each quality element was presented in an IPA matrix. By analysing the position of the quality elements in the matrix, it is possible to identify future strategies and improvements that need to be implemented to meet the needs of guests. Approach – The study analyses 20 quality elements in two IPA matrices, one for domestic guests, and one for foreign guests. Each matrix has four quadrants: “Concentrate here”, “Keep up the good work”, “Low priority” “, and “Possible overkill”. Findings – The results show that there are differences between domestic and foreign guests in their perceptions of satisfaction with and importance of quality elements. The results of the conducted IPA provide guidelines for improving certain areas in the service delivery process in accordance with guest preferences. The research has several limitations, mainly the sample size and the fact that the study was conducted during the COVID-19 pandemic. Originality of the research – The results show the peculiarities of guests staying in homestay accommodation and highlight the differences in perception depending on the origin of the guests. The findings provide clear guidance for practitioners by identifying elements of service quality that are important to domestic and international guests. This provides the basis for creating services tailored to guests’ needs and expectations.