People will dance simple cumbia steps for hours, sometimes with a partner but most often in a circle of friends.
A banda is more like a marching band, and in fact they are often hired to play while marching in parades. They have typical band instruments like tubas, saxophones, trumpet, cymbals, and drums. They play different kinds of songs, so there can be some variety in the dancing. Still, they mostly play cumbia and huayno music (Peruvian folk music). Their music has more of a daytime vibe, and they are very versatile in the events they play. They can play the national anthem during a ceremony, perform for weddings, march behind religious processions, and play fiestas (parties). It is very important that they are taken care of by the hosts; besides their fee they are usually fed before other guests and are given drinks throughout the night. If these customs aren't respected, they may refuse to play. Just like high school bands in the US playing at football games, schools in Perú will have student bands that play at local fiestas.
Where I live, in the Ancash region, an orquesta refers to an Andean folk band. These can have a variety of instruments, but usually include flutes, drums, Andean harps, and sometimes violins. If they're playing on a stage, they will usually have a vocalist singing in a high pitch in Quechua or Spanish, and dressed in traditional clothes. The music they play is called huayno, which has roots in folk music from the time of the Inca Empire. It has a jovial sound (although often sad lyrics) and consists of a slower first part and faster second part.