You get used to the smell - well I did when I did 4 weeks emergency cover repping there
Seriously though, I've holidayed in Kavos a couple of times, as well as having done a few weeks as a rep in the resort. My advice would be: get a safety deposit box for things like travellers cheques/cash, passports, tickets etc, and make your room as secure as you can before you go out especially if you are staying in the middle of the resort as there are a lot of drunkards wandering around who seem to think everyone elses property is fair game. Most of it is common sense really - only take out as much cash as you need, there are rose sellers who wander up and down the strip, while they're relieving you of as much cash as they physically can for a rose their well trained kid is pickpocketing you. Be careful with valuables etc etc -mjust as you would on any loud night out in the UK.
If there is damage in your room when you get there, report it to your rep immediately, they won't have had time to check every room before their airport duties, and make sure they get it in writing so they canback you up if there is a problem, unfortunately there are one or 2 hotel owners who seem to think that claimimg money for damages off everyone that stays in a room is a good way to supplement the rubbish money the TOs pay them to have a load of young brits that thoroughly enjoy being away from home in their hotels and do get a bit carried away at times....
I think as long as you're looking for a bit of (OK a lot of) a party and aren't expecting the Ritz you should be fine, just think any UK city centre on a Friday night, in Kavos every night is Friday night.