Festival-mode seating lets you run one event that combines general admission with reserved sections, instead of forcing every room into a single ticket type. A GA floor can sit alongside reserved tables, boxes, or seated sections within the same event, so the seat map reflects how the room actually loads in.
This matters because most multi-floor and festival-style shows don't fit neatly into one model. Mixing GA and reserved in a single event keeps holds, avails, and the box office view in one place instead of splitting the show into separate onsales that have to be reconciled later.