Bring comfortable shorts or capris. And proper trekking shoes.
Photo Equipment: It would be good if your camera had the option for getting panorama shots - where you can lay one picture next to the other and make it one huge shot... The terraces are awesome.
Luggage and bags:
The backpack is always the most reliable and convenient piece of portable storage when visiting mountainous regions like the Cordillera. A water-proof belt bag is also advisable so you can bring your essential stuffs like wallet and digicam any weather you go.
Clothing/Shoes/Weather Gear: Clothing: It's a must to bring warm but light clothings in Banaue. Like Sagada, Banaue gets more chilly from December to February.
Shoes: Hiking shoes and sandals are all that you need.
Toiletries and Medical Supplies: Your muscles may need some pampering after the hikes, so bring in some muscle pain relievers.
Photo Equipment: Don't forget your DIGICAM and spare rechargeable batteries. Make sure your memory card has enough storage space as you would not want to miss many photo ops.
Luggage and bags:
As usual you will carry all your luggage or bagpack. But bare in mind that when you do want to go to Batad Village and dont have any intention to overnight there, so I would suggest you to bring only few tracking stuffs.
Clothing/Shoes/Weather Gear: No need any extra cloths unless if you want to have a swim in Tappa-ya waterfall with your t-shirt on.
Toiletries and Medical Supplies: This is better to bring along. Incase of emergancy.
Photo Equipment: This is absolutely MUST bring.
Camping/Beach/Outdoor Gear: nahhh...
Miscellaneous: And I advice you to bring maybe few bottle of water since it would be double or triple up the price of the mineral water there. Unless if you dont mind spending money, it's alright.