This is the best use of your airline points - even better than business class

Many travellers fixate on flatbeds for using their frequent-flyer points. But you don't have to book the pointy end to get great value: regional flights in economy can present supreme savings, too. That's because Qantas, Virgin Australia and Jetstar use the distance of a flight - not the airfare price - to determine its cost in points. The shorter the flight, the fewer points required. That makes regional routes a prime target for squeezing value from your hard-earned points.

Travelling between Sydney and Broken Hill? Buying a QantasLink ticket can cost $319 or more, one-way. But the same one-way flights can often be booked for just $54 plus 9200 Qantas points, saving $265. That's 2.88 cents off the ticket price for every point you redeem: it's a sharp deal.

QantasLink's Griffith flights are also a winner to and from Sydney. When the fare price is $249, the alternative could be $51 plus 9200 Qantas points. Using your points saves $198 each way, making each point worth 2.15 cents.

Through Virgin Australia Velocity, Sydney-Canberra flights offer the greatest discount potential. Snagging a ticket for $68 plus 5900 Velocity points could avoid buying an equivalent $261 airfare: saving almost 3.3 cents for each Velocity point cashed in. But it pays to know that Velocity, unlike Qantas, considers both the flight distance and travel demand when determining points prices. On busier days, the same Sydney-Canberra hop can cost up to 12,900 Velocity points (and with the same co-pay), even though the cash airfare may be unchanged. This reduces your potential savings.

Meanwhile, Jetstar flights are bookable at fixed, predictable rates using Qantas points. Fly between Sydney and Ballina for just 5700 Qantas points plus $35 one-way, with a free checked bag to boot. Buying an equivalent ticket could cost $138, making for a $103 saving - and 1.8 cents in value per point redeemed.

By comparison, trade your Qantas points for a Woolworths gift card and you'll get only 0.42 cents of value per point. This means using your points on regional flights can more than quadruple your potential savings versus spending them on the week's groceries. QantasLink's routes to and from Albury, Dubbo, Merimbula, Mildura, Moree, Tamworth and Wagga Wagga are also strong options for savings, with points bookings attracting at least 1.7 cents per point - sometimes more. Other routes like Bendigo, Coffs Harbour, Orange and Port Macquarie still trump the supermarket, just not by as much.