We can't talk about travel at the speed of light, because the length contraction goes to zero for the travelers and their time dilation goes to infinity. It would take infinite energy to go that fast.
Instead, let's assume our craft reaches 87% of the speed of light on the way to the Alpha Centauri system. From the perspective of the travelers, the trip is indeed shorter than you'd expect from nonrelativistic physics, because the travelers see that the distance between the sun and Alpha Centauri is length-contracted to $\sqrt{1 - v^2/c^2} = \sqrt{1 - (0.87)^2} \approx 50\%$ of the original distance ($\approx 2.1$ lightyears). From the perspective of people on Earth, the travelers will still travel $4.2$ lightyears, but they will age less, owing to time dilation. From the perspective of Earth, clocks on the spacecraft will run slower, $\approx 50\%$ of their rate on Earth. Isn't it neat how relativity is consistent like that?