When you have two content objects with a similar interface or shared properties, you have a good candidate for hierarchical post types.
Take places as an example (see this answer):
- Asia
- Europe
- Germany
- Berlin
- Austria
- Vienna
- Germany
Each place has similar meta data: population, geo coordinates, spoken languages. You just can reuse the same interface.
Plus, if you create a separate custom post type for each kind of place you’ll run into WordPress’ missing post-to-post relationship table.
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