Route Types are used to distinguish between routes which should be manifested and routes which are purely for scheduling purposes and therefore do not get manifested.
For example, if you are a Sales Rep arranging an installation date with a customer you may not know which route or driver the installation needs to be done by. You would select the date for the installation and add it to a scheduling route. Your operations team would then see this installation and be able to allocate it to the correct driver.
A Route Type marked as "Is Delivery" will get manifested.