The @PathVariable annotation is a very useful tool for developers working in Spring MVC as it allows them to capture variables from the URL path and bind them to method parameters. By using the @PathVariable annotation, developers are able to determine both the type and name of each variable that needs to be passed along with the request URL. This versatile annotation lets developers use dynamic URLs and make their applications more flexible while still following RESTful conventions. Moreover, with @PathVariable's ability to accept regex expressions as input, multiple segments of the same route with different parameters can still be matched without writing multiple controller methods. All in all, the @PathVariable annotation provides developers a convenient way to use dynamic URLs when building applications with Spring MVC.