When we use page set, report output in excel will have tab names as page1, pag1_2, page1_3, so on..
If you want to display this tab names by report section names then follow below configuration methods.
In cognos configuration settings at Report service for each dispatcher add below advanced settings
Parameter column, type- RSVP.EXCEL.PAGEGROUP_WSNAME_ITEMVALUE
Value column, type- TRUE