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I suppose it's irritating that you pay (a likely large amount of money as it's probably a UK ticket) for a ticket with a seat reservation, the least they could do is actually assign you a seat.
If it's a free for all and - as you likely correctly say - they don't oversell the number of tickets against the number of seats, then the reservation card of the ticket is a little pointless really.
It's likely to differentiate between the general admission cars and the cars that do have assigned (and probably more comfortable) seats.
No, only individual seats are reserved. There's no "reservations only" carriage, but there are carriages that are more or less reserved. Off the top of my head, I think coach B is often very close to, but never actually fully reserved, whereas D has only a minority of awards reserved.
They absolutely oversell on a regular basis on UK train.
Do you have a reference for this?
I'm not questioning that it happens - it's a common thing in high volume hotels or high value airline routes after all - but I'd be interested in what sort of margins they oversell at.
That said, most of the documents would likely be commercially sensitive I should imagine.
I've travelled on hundreds and hundreds of trains in the UK. On busy services, unless you're getting on at the start, if you don't have a specific seat reserved, you will be standing. This is normal. I don't have a source for that claim, I just have many years of experience.
There's a plausibility gap on capping ticket sales for trains. Why on earth would they stop selling "anytime" tickets? They're really expensive and a train with plenty of people standing costs the company no more but earns them a great deal.
What's unusual here is that this looks like it came with an "advance" ticket, which is cheaper, limited in number, only available in advance, and is required to come with a reserved seat, but they've clearly oversold even them.