We visited in August 2012 and going back to Karavados again this year. Pegasus is typically Greek and good value for money. We had no problem with hot water,clean towels or bedding - any extra you need just ask Tassos - really friendly owner, who couldn't do enough for us. Karavados is quiet and a car is essential. 10 mins from the airport and 3 mins from St Thomas beach. Handy for Avithos and Lourdas too within a short drive. Evenings, walk down to Happiness restaurant or short drive to the many tavernas tucked away on quiet roads, plenty to try. Argostoli about 15 min drive. Thank you to Tassos and his lovely wife for making us feel so welcome.